28/09/2007

Demand for rental accommodation rises as house prices soften

The quarterly ARLA survey reveals that rent levels have risen in all areas continuing at trend that began at the beginning of 2007. Rent levels are now at an all time high. In the three months to the end of August, average rents for houses ranged from £819 a week in prime central London, through £345 across the South East to £230 in the rest of the country. For flats, average rents were £525 in Prime Central London, £215 in the South East and £150 in the rest of the country. Commented Ian Potter, newly appointed ARLA Operations Manager, "These figures are consistent with the traditional cycles that are always underlined by the Private Rented Sector when house prices soften. Nearly three quarters of all tenants, 73%, stay in the same rented property for between ten and 18 months, leading to an average tenancy of 16.3 months. The longest tenancies are in Prime Central London at 17.7 months, followed by the South East at 16.5 months and 15.4 months for the rest of the country.

The full results of the latest quarterly survey of ARLA member firms of letting agents are available on www.arla.co.uk.

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