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Rental returns for houses show slight falls

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According to the latest quarterly survey by the Association of Residential Letting Agents (ARLA), rental returns for houses and flats have seen marginal falls.

According to the latest quarterly survey by the Association of Residential Letting Agents (ARLA), rental returns for houses and flats have seen marginal falls. This is the result of new developments of two-bedroom flats coming on-stream, said ARLA’s head of operations, Ian Potter. He added that this has had a positive effect in many areas as it allows the rental market to provide some stability in housing at a time when the sales market is very volatile. He said that “it also demolishes the myth of soaring rent levels”.

In some parts of the country demand for rental property still outstrips supply, with this imbalance at its highest in Greater London and the South East. Overall, the proportion of agents reporting a greater demand than there are rental properties available stands at a historically high level of 39%. Weighted rents for houses, however, are down by 7% and for flats by 9%.

In central London the average capital asset values of rented houses have fallen by 2.4%; in the rest of London and the South East by 1%; and by 5.1% in the rest of the UK. Average values rose for flats by 0.9% in the South East, while falling 3% in central London and 8.1% in the rest of the UK.

The average values of rented houses in central London are £800,000; £336,900 in the rest of the South East; and £223,500 in the rest of the UK. Rented flats in these respective locations have an average price of £486,300, £213,000 and £149,400.

Average rents for a house range from £3,000 a month in London to £931 a month elsewhere in the UK outside the South East. Flat rentals range from £2,000 a month in central London to £585 a month elsewhere.

Increasingly, rented properties are standing empty for shorter periods, going from 24 to 22 days this quarter. And tenants are remaining in properties for longer, increasing from an average of 16.1 months to 16.3 months in the previous quarter.

The ARLA survey shows that 77% of buy-to-let landlords are neither buying nor selling but waiting out the situation until the market improves.

For press enquiries, please contact Phil Rendall on 020 7099 9026
Email: phil@dhbuyers.co.uk
Web: www.decisionhomebuyers.co.uk

News provided by Decision Homebuyers, a leading UK property company offering a quick and simple solution for selling your home, no matter what the condition.

Decision Homebuyers carries out daily surveys of the national media to provide up-to-date news and commentary on the UK property market.



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