By Matthew Kinlin
The cost of renting a property in England or Wales has finally fell after 10 consecutive months of rising, according to a survey from LSL.
Findings from LSL Property Services say that November rents have dropped by 0.4% in November, to an average of £717 a month, when compared with October figures.
However, the survey finds that there is still a year-on-year increase of 3.5%, which equals a rise of £25.
This research showed regional variations, with rents rising the sharpest in Yorkshire and the Humber, and also in Wales.
LSL found the largest monthly drop in rents was in the East Midlands, where rents fell by 2.2% in November.
However, LSL director David Newnes said that a fall in rents was something to be expected.
“Following their relentless march upward throughout the year, rent rises have taken a pause for breath,” said Mr Newnes.
“Landlords are looking to avoid having properties vacant over the Christmas period, and can be less aggressive with pricing as tenant activity slows in the run-up to the new year.”
However, rents did not fall in all areas of England and Wales. Findings from LSL found that rents continued to rise in London, Yorkshire and the Humber, Wales and West Midlands.
Mr Newnes said that he believed rents would rise again in 2012 and this fall in rents coincided with a decrease in the amount of tenants that are falling behind on rent payments.
“We are still also seeing the impact of a changed tenant mix, which is helping keep arrears below historic levels,” Mr Newnes explained.
“A large proportion of current renters are would-be credit-worthy buyers, were they able to provide a big enough deposit to satisfy tight mortgage lending criteria. These tenants are typically financially sound, and less likely to experience payment issues.”
He further added that due to the economic climate and the risk to jobs, tenant arrears are likely to rise in 2012, and with them will be a rise in rents.