Experts not concerned over slow December in the rental market

Experts not concerned over slow December in the rental market

London's rental market experienced what, on the face of it, may seem like a weak December. But experts are unfazed by the way the market performed in the last month of the year thanks to the strong months prior. 

According to the latest published HomeLet Rental Index, the price of renting a property in London experienced an 11 per cent monthly fall in December 2014. This looks to be a real negative for investors, however, this is not necessarily the case. 

A spokesman for HomeLet said that it was not concerned by this monthly drop, largely because 2014 as a whole was a year that was filled with positives and rental price rises in the rental sector. 

Martin Totty said: "With property prices continuing to grow, and mortgage criteria tightening, the rental market represents a much more accessible option for house hunters than the property ladder.

"The demand for rental property is increasing, and we expect it to continue doing so in 2015 as large numbers of people are priced out of buying. As a result, we expect to see continued growth in rental prices across the UK as the new year progresses, particularly as real incomes are starting to rise."

He also said that the price drops seen in London throughout December was in line with the sort of seasonal behaviour we can typically expect to see in the UK's rental market. 

At this time of the year, there is typically a quick drop in the number of people who are looking to rent as more and more shift towards preparing for the festive period instead.

In addition to this is the fact that even with the slight depreciation in December, the price of renting was generally favourable for landlords in London throughout the year. 

HomeLet's Rental Index showed that the capital's private rental prices climbed by some 12 per cent on average throughout the course of 2014.