Rental prices of residential property in the UK is the highest in the last 11 years

The average cost of rent for residential property in the UK hits new records, showing in August, a growth of 4 %, and in the year of 11% , reaching magnitude 11 – year high – an average of £779 pounds. The cost of rent for residential property in London rose by 2% over the last month, and now it is the highest in the country – £1465 pounds in a month.

The situation on the rental market is that rental demand far exceeds supply, and every month the number of long-term agreements are becoming more. Now the average duration of a lease of residential property has increased in London from 12 months to 18 months because people are afraid of rising prices, and fear being priced out of the rental market residential real estate and try to secure a more stable residence in future.

The number of tenants in the UK in August increased by 8%, and YTD – by 17%. Despite the fact that average rental rates are at an 11-year high, it’s not a slipped growth, since the market is not receiving a sufficient number of units of new properties to meet the increasing monthly demand.

On the real estate market of London the number of tenants has grown by 5% and the number of new ready for rent real estate listings decreased 1 %. As a result, a phenomenal growth of activity in the rental market in London and the rise monthly rent by 12% year on year.

The number of mortgage loans for rental property rental increased by 31 % for the year.

A measure of the strength of the rental market is also increasing the number of views. Now the number of views of the property in order to rent is at its highest level since 2011. The growth in the number of lease transactions is far ahead of the growth in the number of hits, which is a symptom of high competitive environment in the rental market of the UK.

® Alice Morgan 24.09.2013 g.