Landlords See Residential Lettings Market Remaining Buoyant

The residential lettings market remains buoyant, despite the fact that the property sector has been hit hard by the recession.

Figures from specialist letting agents’ service provider Endsleigh shows good news for landlords as the majority of rental prices in the UK have steadily increased over the last 2 years.

The average cost in the UK has risen by 4%, well above the inflation rate in 2010, which fell to as low as 3.0%.

Whilst prices for tenants have gone up in regions across the UK, London comes out as the most expensive area, costing double (£1372) the average rental price (£688) per month.

Tenants in the Capital have experienced an 8% increase in their rental price, with living in London costing over a quarter more than it does in Middlesex, identified as the second highest priced region.

Surrey is ranked third with the price of a property costing £973.

At the opposite end of the scale, Scotland comes out cheapest, with a tenant paying just £299 per month for a property, almost half of the national average.

Lincoln, Stirling and Stafford also came out as good areas for tenants, being named the second, third and fourth cheapest areas in the UK respectively.

Despite the increase in rental costs, there seems to be some good news in the short term for renters. Carlos Thompson, Endsleigh’s Head of Business Development, said: “Our survey in April showed that two thirds of landlords won’t be putting up their rents this year. I suspect the increase in rental prices in the last two years has brought rental prices in line with the market value, allowing costs to plateau this year.

That said, he added a note of caution for landlords by saying “The very nature of rented accommodation means there can be unexpected surprises, with the possibility of tenants falling into difficulty, or leaving suddenly.

“But if landlords protect themselves from lost income through rent guarantee insurance and robust tenant referencing they will be secured against the unexpected, enabling stability in their portfolio of properties.”