Rents continue to fall at end of 2011

After 10 months of rising rent costs, figures from LSL Property services have revealed a fall in rent charges in both November and December.

Survey data from LSL showed that the average rent charge fell by 0.8% between November and December. This was the second consecutive month that charges fell in 2012, but the average rent was still 4% higher than it was in December 2010.

The average rental charge for the whole of England and Wales is now at £711 per month.

The figures varied across the regions, with only Yorkshire, the Humber, West Midlands and East Midlands reporting a rise in the average rental charge for their regions in December. London reported its first drop in average rent charges for a year.

Across the country, only the South West of England and the North East of England reported a drop in rental charges when compared to the end of 2010.

However, LSL indicated that average rent charges tend to have a seasonal dip towards the end of the year. This year, the drop in charges wasn’t as great as last year. A spokesperson from LSL said: “The rental market was sheltered from the full impact of the seasonal lull by the strength of underlying tenant demand as many prospective renters took the opportunity to move in the run-up to Christmas at a time when the market is traditionally less competitive.”

Other experts warn that the drop in average rent charges may only be a temporary effect and are careful to point out that the rental market may not yet have peaked. Demand for rental properties still outweighs the amount of property available and this is likely to push prices up again.

January and February are also two of the busiest months of the year for rental properties and experts predict that the upward trend for rent charges is likely to resume at the start of this year.