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Rents fall for first time in six years | Rents fall for first time in six years |
(35 minutes later) | |
The average monthly rent for newly-let properties has fallen for the first time since late 2010, according to estate agency Countrywide. | The average monthly rent for newly-let properties has fallen for the first time since late 2010, according to estate agency Countrywide. |
The drop has been due to a big recent increase in the supply of properties becoming available, mainly in London. | The drop has been due to a big recent increase in the supply of properties becoming available, mainly in London. |
That was due to some landlords rushing to buy last year before a 3% stamp duty surcharge came into effect. | That was due to some landlords rushing to buy last year before a 3% stamp duty surcharge came into effect. |
The average new tenancy in England, Wales and Scotland fell 0.6% in the year to February, to £921 a month. | The average new tenancy in England, Wales and Scotland fell 0.6% in the year to February, to £921 a month. |
The main factor was a big drop in rents in London and the south east of England. | The main factor was a big drop in rents in London and the south east of England. |
In the capital they fell by nearly 5% in the past year to an average of £1,246 a month, and in the south east of England they fell by nearly 3% to £1,152. | In the capital they fell by nearly 5% in the past year to an average of £1,246 a month, and in the south east of England they fell by nearly 3% to £1,152. |
Everywhere else rental levels continued to rise. | Everywhere else rental levels continued to rise. |
"Rents are growing in most of the country but falls in London and the south east are dragging down the national growth rate, " said Countrywide's research director Johnny Morris. | "Rents are growing in most of the country but falls in London and the south east are dragging down the national growth rate, " said Countrywide's research director Johnny Morris. |
"Early signs point towards 2017 being a rare year where rents rise faster in the north of the country than in the south." | "Early signs point towards 2017 being a rare year where rents rise faster in the north of the country than in the south." |
Countrywide's research is at odds with the most recent figures from the Office for National Statistics (ONS). | Countrywide's research is at odds with the most recent figures from the Office for National Statistics (ONS). |
Its latest figures, for the year to January 2017, showed that rents for private tenants across the UK had risen by 2.2.%. | Its latest figures, for the year to January 2017, showed that rents for private tenants across the UK had risen by 2.2.%. |
When the figures were published last month, the ONS commented that "inflation in the rental market is likely to have been caused by demand in the market outpacing supply" - a different message from that of Countrywide. | When the figures were published last month, the ONS commented that "inflation in the rental market is likely to have been caused by demand in the market outpacing supply" - a different message from that of Countrywide. |
Countrywide reported that across Britain there had been a 5% rise in the number of people looking for homes to rent during the past year, but in London, and the south east of England, the number of would-be tenants had dropped, down by 3% and 5% respectively. | Countrywide reported that across Britain there had been a 5% rise in the number of people looking for homes to rent during the past year, but in London, and the south east of England, the number of would-be tenants had dropped, down by 3% and 5% respectively. |
Everywhere else, the estate agency said, tenant demand had continued to grow, especially in the East Midlands, the east of England and the north west of England. | Everywhere else, the estate agency said, tenant demand had continued to grow, especially in the East Midlands, the east of England and the north west of England. |
On the other side of the coin, Countrywide said that in February this year there were 10% more homes available to rent than a year ago. | On the other side of the coin, Countrywide said that in February this year there were 10% more homes available to rent than a year ago. |
But the agency expects this apparent over-supply of rental properties to be flushed out of the market in the coming year, with average national rents starting to grow again after that. | But the agency expects this apparent over-supply of rental properties to be flushed out of the market in the coming year, with average national rents starting to grow again after that. |