Rental market is 'white knight' of housing market as a whole

09 2008
Average rental prices in the UK are undergoing a sharp correction after a short period of increases, the Association of Residential Letting Agents (ARLA) has confirmed today (June 9th).

With the housing market at large experiencing a lull as buyers adopt a 'wait and see' approach amidst current global liquidity issues, some landlords had been pushing rents up.

However, the new research from ARLA suggests that rented housing prices are down seven per cent, while rented apartment costs are down by nine per cent.

ARLA head of operations Ian Potter said: "We are seeing corrections in individual locations throughout the country.

"The main cause of these is the developments of new blocks of two-bedroomed flats coming on-stream. In many places this has had a positive effect as it has allowed the rental market to provide stability in housing at a time of volatility in the sales market.

"It also demolishes the myth of soaring rent levels. As before in volatile times, the rental market is proving to be the white knight for housing as a whole."

The average house renter can expect to pay £3,000 a month in London compared to £931 a month outside the south-east.

Meanwhile renters of flats can expect to pay an average of £2,000 a month in central London, £854 in the south-east and £585 a month in other parts of the country.
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