The UK rental market seems to have stabilised
February 8, 2012 Leave a comment
Over the last few years in the UK, and especially in London, rents have risen at such a high rate that they do not seem sustainable anymore. With tenants already spending up to two thirds of their income on rent, they simply can’t afford to pay more. Thus prices seem to have peaked and the rental market is likely to stabilise furthermore in 2012.
Caroline Kavanagh is the managing director of Townends Letting and Management and she shares the same point of view. According to her, landlords must consider the change in market dynamics. Whilst tenants have accepted nearly every rise of their rent for a long time, they now want to once again use their power as a consumer by looking for alternatives. Landlords will have to adjust and re-assess their rents accordingly.
In contrast London rental prices have overtaken the heights of pre-crisis 2008, whilst other parts of the UK still present a little margin. Regions such as the North West, the East Midlands or East Anglia could see rents rise modestly but in general landlords should be cautious with their profit expectations.
Image : flickr / Robert Scarth