Sequence Reports a Rise in Rents

There is a recent study provided from Sequence that proves there is an increase in rents across the board. This trend has been noticed in several different agencies that OnlineLetting Agents has been following up on, especially since the trajectory of the trend will ultimately affect the market in the future. The strongest letting agency chains are raising the rents along with the 300 other strongly led agencies as well. The top agencies that are raising the rents are BarnardMarcus, William H. Brown, and Fox & Sons. Among these popular letting agencies, this will undoubtedly dictate the renting market for the future to come, and is likely that this trend will be getting even more exaggerated as time passes.

Statistics

What the researchers have found is that the rental data has risen 1 percent in the past month. The average rents cost around 762 pounds per month, and are expected to continually rise as well. This has also affected a more dramatic rise for new tenants, with them facing 20% increases of annual costs that did not exist in previous years. This theme will change the landscape of the renting business and has also affected whether people are opting to rent or buy a property.

Not all of the renting prices have been consistent, however. London is one of the most affected markets that has seen the largest rises in rent prices in recent history. Currently, the average rent is up to 4% increase of an annual payment. In addition, the average rent in London is 1,427 pounds per month, which is at an all time high and is not expected to see a reduction any time soon. In addition to the inflation of prices, the number of new tenants is up 37% as well, which means in London people are renting more than ever.

Driving the Market

The simple laws of supply and demand are what is dictating the rise in the market rental prices. Currently, there is an average of six prospective tenants that are fighting for each rental in the London capital. This is one of the most competitive markets in the world, and it seems like with foreign investors this competition is only getting fiercer.

There are simply no new rental properties that are coming onto the market, which makes it difficult to keep up with demand. For this, it is simple for the agencies to simply raise the prices of rent in order to reap revenues and stoke an increase of earnings for the agencies as well. The growth in rents is not seemingly keeping people from wanting to rent flats in the capital, and while it is most obvious in London this is a trend that has taken a hold of the majority of the UK at varying levels. The days of sensible rent has seem to enter a new phase in which inflation is the norm and demand continues to grow.