One of the problems which the UK has been facing is that landlords are having difficulties keeping lettings rented. For the first time this year rents have fallen and in November it is said that they dropped by 0.4% on a month-to-month.
Currently the average rent in Wales and England stands at £717 which is down for the month but still up by £25 for the year. Rents actually have been rising over the past year and are highest in the South East and London which are rising at a rate of 4.2% a year. In the South East the average rent is £741 per month whilst in London it is at £1,033.
These figures have been released by LSL Property Services, which is a major lettings agency. The director of LSL said that the reason for the drop in rents is that landlords are looking to keep their properties rented over the holidays and by dropping prices more tenants may have the ability to rent during this period that slows up until the New Year.
Even so, there are fewer rentals around so these dropping prices are not going to last long. In fact, according to LSL director David Newnes, prices will once again start rising in 2012 because of the shortage of rentals. This will force prices up because demand will of course be higher than supply.
It is becoming increasingly difficult for buyers to find financing for homes and this is placing an increased demand on rentals. Also according to Newnes, many of these renters would have a credit rating which would qualify them to purchase a home but are not able to make the necessary deposit. Even so, he believes the there will be greater challenges next year with the debt crisis and the current state of unemployment.