Rental Property Prices Decrease for First Time in Eight Years
The UK housing market of 2017 has seen activity with peaks and valleys and everything in between. At the center of all activity is the rate of growth of house prices which has been temperamental through the first half of the year. House price growth is directly connected to demand and other factors relevant to the market. Growth has stalled currently and following that cooling off have been rental prices.
Rental prices have cooled off in year on year comparison for the first time in eight years. The level of cooling off varies region to region, but the average slowdown is now in negative territory for the first time since late in the year 2009.
Rental property has become the choice of many young people searching for their first residence outside the shelter of mum and dad. House prices have come to a point of zero growth as of late, but prior to now house price growth had been surging ahead with no clear end in sight. Those in search of a home have accepted the fact home deposits are significant and difficult to manage. Without the bank of mum and dad, many have decided rental property is the only way it is currently affordable to live under a different roof.
Many experts predict rental property could remain hot until Brexit details are completed and much of the current uncertainty calms a bit. Until then, the rental property option will remain a popular choice.
Housing data from the month of May indicates city of London rental prices have fallen 3% in year on year comparison.