Private rents fall as tenants leave sector
Private rents dipped slightly last month but have increased year-on-year, according to lettings agency LSL Property Services.
LSL’s buy to let index shows rents in England and Wales fell in March by 0.3 per cent compared to the previous month, but fell by 2.7 per cent compared to March 2011.
David Newnes, director of LSL Property Services, said: ‘The recent dip in rents will be welcome news for tenants, with the cost of renting at its most affordable level since July.
‘The rental market was still feeling the knock-on effect from the stamp duty deadline in March, with an increased number of tenants rushing to leave the sector in the first part of the year, easing tenant competition.
‘However, drop-off in rents is likely to be short-lived. With the passing of the stamp duty deadline increasing the cost of moving, and banks’ funding conditions likely to limit high value mortgage lending to first-time buyers, would-be buyers will be more reliant than ever on rented accommodation. As we head into a traditionally busier period for the market, a redoubling of tenant demand is likely to push rents higher once more, despite the improved supply.’