Rents Still Increasing Steadily Despite Election Fever

Thursday, May 7, 2015
PRS Rental Prices Still Increasing Steadily

PRS Rental Prices Still Increasing Steadily

Rents Still Increasing On New Tenancies
Regardless of Political Promises

According to new data gathered from the latest Quarterly Lettings Index conducted by Countrywide, average rents for new tenancies in private sector rental properties increased by 4.5% in the first quarter of 2015 to reach an average monthly price of £894 (GBP), an increase of £41 per month since the final quarter of 2014.

That may be good news for landlords on any other day, but today is General Election day and the UK should have a new leader by the end of the day, and landlord prospects could be very different depending on which party gets into power, but only time will tell.

Private rental sector (PRS) landlords are attempting to move away from housing tenants claiming benefits and prefer granting tenancies to working tenant applicants, because it is easier to ensure continuous rental income thanks to specialist insurance products such as Rent Protection insurance.Irrespective of the election result or whether landlords own a large portfolio of rental properties or have just a single-let investment property, the non-payment of rent by tenants is a serious and increasingly common problem for many landlords.

Even the most fantastic tenant referencing system in the UK is unable to predict if a tenant will be affected by unemployment, or suffer from a serious illness or accident which leaves them unable to work.

Landlords can avoid the inconvenience of rent defaults with 100% rental income protection.

  • Protect 100% of rental income against non-paying tenants
  • Unlimited period of rent arrears covered up to £50,000 (GBP)
  • Policy also includes the cost of evicting the defaulting tenant
  • Legal expenses covered up to £50,000 (GBP)
  • 50% of the rent paid for a further 2 months after the tenant evicted
  • Rent protection insurance is available for both 6 and 12 month tenancies

Rental prices for 1 and 2 bedroom properties increased slightly whilst rental prices for 3 & 4 bedroom properties fell by 0.1% to average £939 and £1,435 (GBP) respectively.

However, when comparing March 2015 to February 2015, PRS rents increased by 1.6% and 16.4% for three and four bedroom properties.

Regionally, average monthly rental prices in the first quarter of 2015 fell in more than half of the 13 UK regions, with the largest rental price fall recorded in the South East of England – down 1.9% to £1,097 (GBP) per calendar month (pcm).

The largest fall in average rent on a month by month basis was observed in Central London, where rents fell by 4.4%.

The average rent being charged by landlords for renewed tenancies in March was an average of £848 (GBP) pcm, an increase of 0.8% month-on-month and 2.3% year-on-year.

Regionally, the only drop in rental asking prices in March was recorded in Central London, where rents were down 2.3% on February to £2,485 (GBP) pcm. Every other UK region recorded either no change or a rise in rental prices, with Wales enjoying the biggest increase – up 13% to £654pcm.

The average rent for all occupied rental properties in the UK’s private rental sector was £840pcm, a growth of 0.2% month-on-month and 2.4% year-on-year.

With rental prices stabilising and more landlords using specialist products such as Rent Protection insurance to guarantee continuous rental income, there is even greater demand being placed on landlords operating in the private rental sector to house a growing number of tenants.

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This was written by Mike Clarke. Posted on at 11:30 am. Filed under Insurance, Landlord News. Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.