Are rents really decreasing
I have read several recent reports that claim the average rent dropped in over half the regions of the UK. However, I have attended several industry events already this month and not a single person has mentioned that rents are decreasing.
However, when you start to interrogate some of the reports, it is clear that any drops are minor when you factor in the number of properties that are currently being rented.
My home region the West Midlands apparently has had a fall of 1.11% which in real terms equates to only £8 a month. One report has the headline that landlords should sell due to rent decreases, if you look at the average including London the decrease is just under 1%.
Other than to get visits to the websites of these reports, why would you try to scare landlords with such a headline? To quote “west midlands see sharp decline in rent” as mentioned before it was just over £8.
If I read one of the reports from any of our lobbying bodies, I could understand a potential PR benefit, especially with all the landlord bashing that has recently occurred but anybody looking at the figures would soon see the truth. Especially when other reports are telling you to invest in the North west as they are bucking the decline trend and have increased rents by almost 2%.
Of course, are capital still has the highest rent rates at just over £1600 a month.
Was it just a slow news week or is there really the start of a decline trend in rents? From my experience until we fully understand how and what Brexit will be, rents will continue to increase as demand is still outstripping supply.
Are you experiencing downturns in rental income?