North West rents rises among highest in UK
Residential rents have already increased by over four percent in the last 12 months and are likely to be driven further upwards month on month heading towards the year’s end.
That’s how leading Lancashire Estate Agent and landlord, Paul Ainsworth Lord, founder of Darwen company Ainsworth Lord Estates, sees it right now “I have been a little surprised at the relenting rise in rents that there has been over the past year on all kinds and types of properties and in all kinds of different locations UK-wide.
In fact, here in the North West, according to stats out recently from the RICS, the rises around here have risen the most in the past year – by almost seven per cent,” says Paul.
With no noticeable easing of loan availability in general right now, more and more people are being blocked from getting into the buying marketplace. They are thus having to rent instead. This, of course, brings about increased demands for rented homes and so rent increases - and is likely to go on doing so.
Says Paul, “It is no surprise that rents will go on rising, almost as much next year as they have this. To prevent this will require a drastic improvement in lending, and thus the ability of more people to buy a home. But this is unlikely, in fact very unlikely!
This will mean in many areas, and for many properties over the next year period, rents from the start of this year, could well have climbed by all but ten per cent and that here in the North West rents could finish up 12% more – it’s a challenging situation for sure,” adds Paul.
Tenants demand growing
The RICS points out that the whole overall situation is building currently – no pun intended! They say that, the amount of new properties coming on to the market has little changed, but demand among tenants went on growing. The view is tenant interest is still riding high, and what remains to be seen is whether many are willing to meet the increasing rents being demanded by landlords.
Month on month
A recent study by LSL Property Services found that in the summer period, average rents increased by 0.9pc month-on-month to reach £718 a month, and they seem certain to continue that way going on into next year.
Says Paul, “Here in Lancashire, I am seeing all too often that Landlords increase the rent at times almost at will. They do so without fear, because, in so many instances they know at the moment if their current tenant doesn’t want it, there’s someone out there that needs a place badly enough to swallow the increased rent anyway.
All of this is not a pleasant situation for the future well-being of the property marketplace as I see it. For the future it seems difficulties will both intensify and perpetuate. So many of these kind of issues do need to be addressed by the Government, alongside the fundamental problem of the shortage of new housing coming onto the market here in the UK.
It is a difficult scenario and from some angles one sometimes can’t help feeling that the beginnings of a serious failing for the property market are still very much with us heading into the future,” adds Paul finally.