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UK Rents Fall in Q1 2013

By +Eric Jafari

UKrentsfallAverage rents in the UK fell in the first quarter of 2013, according to the Move With Us Rental Index. Advertised rents dropped by 0.43 per cent between January and March. However, this didn't take the form of a straightforward downward trajectory. Prices dropped in early January, before stabilising towards the end of the month and throughout February. March saw rents drop again by 0.25 per cent.

Nonetheless, Move With Us stress that when examined as part of a yearly trend, the change is relatively small and isn't a cause for concern. In fact, rents are stable and fluctuate around £969 per month. This means that prices are at equilibrium and fluctuations are the result of changes in supply.

Robin King, director of Move With Us, commented: "The current quarterly trend suggests that rents could fall further in the coming months, though if this is the case it should be by less than 0.5 per cent. However, the long term trend indicates that advertised rents are more likely to remain at a similar figure, with possible increases close to the rate of inflation."

However, rental growth isn't the same throughout the country and the first quarter of 2013 saw changes in regional trends. In north, rents grew at a much slower pace than in 2012, while the south of England continues to enjoy strong growth. In fact, there is a GBP 121 gap between the cheapest southern region and the most expensive of all other areas, Mr King explained. The north-east and east midlands have also seen some of the larger price rises, but this has been offset by a fall in advertised rents in Q1.

Scotland and East Anglia have emerged as the most consistent regions in Q1, with prices rising at a steady rate between January and March. "Advertised rents in Scotland appear to have recovered from a difficult end to 2012, seeing two successive quarters of stable rental price growth which is likely to continue throughout 2013," Mr King explained.

17 April 2013

Tags

Rental Property Market,Rental Statistics