Casting a look back over last year the cost of renting rose 3% throughout 2014 according to research.
The average residential home in the Uk cost around £767pcm by the end of 2014, compare this to figures from the previous year which figured at only £745.
“Recent months have shown a divergence from usual seasonal norms. Historically, there is a tendency for rents to ease in the winter, particularly December,” said Adrian Gill, director of Your Move and Reeds Rains, both of whom are part of the LSL property services group.
“With fewer tenants willing to relocate in the festive period, landlords usually compete to fill empty properties and agreed rents tend to dip as a result. Last month (December 2014) that happened – and rents fell compared to November – but by much less than the usual extent.”
The festive squeeze
The proportion of tenants in arrears rose in December. The festive financial squeeze left 8.9% of tenants in arrears, the highest proportion since the previous December.
The figures show that the cost of renting rose in eight out of 10 regions in England and Wales during the course of 2014, but rents fell over the year in the North East of England and the South West of England.
What lies ahead?
Market conditions, combined with the likelihood of interest rate rises and uncertainty over the general election is likely to result in static or low rental increases in the UK in 2015, it is claimed.
Rental rises are likely to be restricted by factors such as continued low disposable income, anticipated interest rate rises and a forecast of economic development in 2015 that is expected to be lower than this year, according to the forecast analysis from Belvoir Lettings.
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