According to FindaProperty, tenants will need to act quickly if they want to enjoy a bargain rent for a time before they return to 2008 levels.

Tenants who negotiated discounts over the last eighteen months should expect a return of market rent and according to FindaProperty's November Rental Index, the average UK rent rose to £831pm (+0.1%) making it the 7th consecutive month of level or rising rents.

Though overall rents remain down 2.5% on last year, the gap is now closing quickly as indicated by the current disparity being the narrowest year-on-year.

 

The reason for increasing rents is that, although past surplus of rentable property meant tenants could haggle, the number of properties available to rent continues to decline (down 3.5% in November) making competition between applicants for tenancy tougher.

The average number of days it now takes to let a property is 55, down by 16 from 71 days at the start of 2009.

Michael O'Flynn, Director, FindaProperty said, "... there is a clear trend of recovery in the rental market with stock levels declining and prices recovering ... this is good news for landlords but for tenants it means that the days of discounted rents, juicy incentives and plenty of high quality stock to choose from are probably drawing to a close. As such, tenants need to act fast if they still want to nab a bargain before rents return to 2008 levels."

Source Mortgage Solutions

What We Say ~ we have noticed recent RICS rental assessments within the Sale & Rent Back sector being higher than the vendor is currently paying to a lender.  It is important therefore, that Landlords satisfy themselves that the tenant is aware of and has agreed to a fair market rent (or very close too it) thus, avoiding any unpleasant experiences as rents increase to fair market.  This could be of particular concern to a tenant who is on or expects to be on a fixed or limited income, such as a pension, that might not allow the upkeep of future fair rental increments.

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