Rental costs dip in January - Buy To Let - News - Moneyfacts


Rental costs dip in January

Rental costs dip in January

Category: Buy To Let

Updated: 15/02/2013
First Published: 15/02/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The cost of renting a home in England and Wales dropped by 0.3% during January as the mortgage market showed improved levels of activity, according to latest research by LSL Property Services.

The average monthly rental repayment stood at £732 last month, the lowest level seen since July 2012, with the South-East of England experiencing the biggest drop in rental costs.

Increased activity in the mortgage market, as a result of the Government's £80 billion Funding for Lending Scheme, is believed to be a contributing factor towards the drop in rental costs. A number of lenders have launched competitive mortgage deals and reduced their rates over recent weeks, providing some relief to frustrated borrowers.

David Newnes, director at LSL, said: "An improving mortgage market in January helped take a little pressure off the limited supply of rental property, at a time when the demand from tenants on the move is far from its seasonal peaks."

Despite the slight fall, average rents were found to be 2.8% higher compared with January 2012, highlighting the fact that demand for rental accommodation is still high amongst would-be buyers.

What next?

Speak to a BTL mortgage adviser
Compare fixed BTL mortgages

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Number of parent landlords on the rise

The cost of renting is on the rise, but would it cheaper if you were renting from your own parents? Many children of property moguls will hope so, and with the number of parent landlords on the rise, it’s something more and more could benefit from.

Landlords: BTL mortgage rates are still falling!

The cut to base rate has had a welcome impact on mortgage rates, and it isn’t only residential borrowers who are benefiting: buy-to-let (BTL) investors are continuing to enjoy a fall in rates, particularly those looking for a longer-term deal.

Landlords – are you embarrassed about being one?

Becoming a landlord is often touted as a way to secure valuable income and build a nest egg for the future, yet once that dream has been realised, many property moguls are actually embarrassed to admit their vocation.