In the rental market of real estate of England – inflation

Rents for houses and flats in England and Wales remained unchanged in June 2013 without seeing a traditional for this time of year, the growth, as it was in the last five years. It happened because of the surge in buying activity, which, respectively, facilitate the burden on the rental market.

In June 2013 the average rents are 2.6% higher than the city earlier in June 2012, but it has not changed from the previous month, when £727 per month.

The latest data from the rental market in England suggests that inflation in the rental market of real estate in England and Wales reduced from month to month, and if you look since 2008, its monthly increase was 0.8% per month.

Data on number of new tenants in June also reflected a slight decrease of overheating in the rental market of real estate. In England and Wales in June were 0.8% fewer new tenants than in may. However, activity in the rental market is still very high. The number of rented apartments in June by 3.5% more than the city informed.

Traditionally, a very notable regional differences in the rental market of real estate. In five of the ten regions recorded an increase in rents. The most dramatic increase in rent was in East Midlans, where rents increased in June by 0.7% compared to may. A significant increase was also recorded in the North-West and South-West is 0.5% per month.

The strongest reduction occurred in Wales, by 1.9%. In Yorkshire and the Humber the decline has reached 0.6 percent compared to may in the Western Midlane – 0,5%.

On an annual basis, rents in 7 of 10 regions are now higher than in June 2012, London remains the city with the fastest rising rents by 6.4 % per year. However, the rate of inflation in the rental market of the London property fell in June, compared with the peak in inflation registered in March of 2013, at 7.9%.

East Midlans is the second region in the rate of inflation in rental rates, with 3.4% in June, and in the North-East average rents are 2.5% higher than a year ago.

If prices for rental property will continue to grow at the same pace as in the past three months, the average investor in England or Wales, will earn about 9.5% per year, equivalent to £15773 in monetary terms.

® Helen Entree. 23.07.2013