Now it is house rents turn to plunge

Posted under General by Jermaine

While everything else in the housing market and other businesses has been going down, it is the turn of house rents to plunge now, but for great relief to the renters in the UK.

A flood of unsold homes onto the letting market is making rental prices plunge, said Jessie Hewitson.

When people and businesses have been talking of cost increases and losses, renters are happy that they would be able to save something in rents during the acute cash crunch.

A large number of homeowners, unable to find buyers, are compelled to let their homes instead. This has caused spurt in number of houses in rental market, leading to rents going down.

According to a property-search website report there was steep increase of 13.8% in to rent properties in June, by July it was further up 0.8% and 4.65% in August. This led to falls in rent. The UK rent average in June was £950 which dropped to £850 in July and to £835 in August.

The fall in rent in Durham during June to September was 11.2%, 7.3% in Edinburgh, 4.2% in Leeds and 4% in Newcastle.

According to Hamptons International rents went down 5.5% in London compared with 4.2 across the UK in the past 3 months. It also reported that rental stocks in London’s St. John’s Wood and Knightsbridge areas had doubled compared to those during same period last year.

Emilie Dawes, letting director of Marsh & Parsons, described oversupply of homes leading to reduction in rent, as huge surprise to landlords.