Rents drop 2.5% for second month running

Published by Max Salsbury for 24dash.com in Housing and also in Finance

The average cost of rents across the North East has dropped by around 2.5 percent - the second month running to see prices fall.

New research shows that across Britain as a whole, average advertised rents have remained close to January's levels - with minimal growth.

The Move With Us study found that the average rent currently stands at £972 per month, and is likely to remain so for the coming months.

In contrast, Scotland has seen advertised rents rise above January 2012 levels for the first time in four months.

In London, meanwhile, rents appear to be rising after a three month decline.

Prices bottomed out at £2,194 per month in mid-February before increasing to £2,196 by the end of the month.

Average advertised rents in the North West and West Midlands both continued to increase at the steady rate seen throughout 2012.

The regions appear to be the most stable, with yearly rent increases of 7.46 percent and 3.55 percent respectively.

In contrast, advertised rents in the East Midlands and Wales have continued to decline and can be expected to do so in the coming months.

Robin King, director of Move with Us, said: “Overall, average advertised rents have not changed by a large amount this month, with seven regions changing by less than one percent.

However, there are several regions that are set to see continued changes in rents by the end of the quarter. With improving economic conditions and increases in borrowing, we may be about to see a change in the rental market and a move away from renting due to improved levels of first time buyers entering the market.”