Rents reached record highs in parts of the country last year but is the rise set to continue? Experts seem divided.
FindaProperty.com believes that, after a small seasonal fall over the Chrismtas period, rental prices will continue a steady rise, pointing out that prices have picked up very quickly after the seasonal dip in previous years. Belvoir lettngs, one of the biggest UK franchises, on the other hand, predicts that rents will remain broadly flat, keeping in line with inflation but that the south-east will again out-perform the rest of the UK. Knight Frank expects modest rent growth of 4-5% in central London for the whole of 2012, a much slower rate than we have seen recently.
What is clear is that there will be stark differences across the country. 2012 is a big year for London and it seems likely that the capital will again lead the way, with demand for accommodation outstripping supply. The picture outside the south east is likely to be less certain. Much will depend on the economy, which in turn hangs on whether the Eurozone can successfully resolve its current crisis, a prospect that most commentators consider is unlikely (as to which, see my comments)