Tenants who have managed to negotiate rental discounts or taken the opportunity to trade up over the last eighteen months should prepare for the return of a landlord’s market, says FindaProperty.com.
According to their November Rental Index, the average UK rent rose by 0.1% to £831pcm between October and November, taking the annual difference in rents to just -2.5% following seven months of stable or rising prices.
This is the smallest disparity in rents year-on-year, and with the gap decreasing it is unlikely to be long before rents are back up to 2008 levels.
Although excess supply has depressed rents over the past year, the number of properties available to rent decreased by 3.5% this month and plummeted by 10% in October.
This significant drop in supply levels has put upward pressure back on rents and has also created a more dynamic and fast-moving market: the number of days properties are taking to let, which now stands at just 55 days, is down 22.5% from the 71 days recorded at the start of the year.
Houses for rent are fast recovering to last year's levels. With average rents of £871 they are just 1.7% down on November 2008, and have increased by 0.1% in the past month. Flats, however, have seen rents remain stable month-on-month in November (£749) and are down 4.1% on the same period last year.
Michael O'Flynn, Director at FindaProperty.com, said:
"We are now seeing a clear trend of recovery in the rental market, with stock levels declining and prices recovering. This is good news for landlords but for tenants it means that the days of discounted rents, juicy incentives and plenty of high quality stock to choose from are probably drawing to a close. As such, tenants need to act fast if they still want to nab a bargain before rents return to 2008 levels."
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