Rental Prices Reach New Highs
Private Rental Sector Continues To Grow
The private rental market is reaching new heights again as the lack of available ticks up prices. Rental prices are now almost at record levels previously reached in October 2012. After rapid increases in 2011 and 2012 prices eased back at the start of 2013. There has however been another spike in rental prices over the summer as tenants scramble for accommodation. The yield that most landlords can expect to achieve on the average rental is around 5% which roughly equates to around £10,6000 on a £200,000 property.
The London rental market is in a league of it’d own where prices have already risen by 4.6% and show no signs of easing off. By contrast other parts of Britain show a drop in rental prices where Yorkshire and the Humber are down 1.3% on a year ago.
Families Incomes Are Still Being Squeezed
In parts of the country the rental market has been slowing down as tenants look to get onto the property ladder with the various schemes that have been introduced by the government. They will never get another opportunity to buy a property with the taxpayer funding nearly all of the deposit. However many families are still not able to buy because income growth has remained subdued which is forcing them to continue renting.
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