The United Kingdom (UK) rental market is flourishing while the residential real estate market continues to struggle, according to research from Experian. More rentals are entering the market and less are being sold, with the third quarter in 2011 marking a high year-end increase of 14.6% over the same period in 2010. London is the regional leader in the rental market with 20% of all UK rentals found in the capital city, although the largest increase in rentals occurred in the West Midlands. Meanwhile, the most houses for sale were found in the South West, whereas home for sale in London have dropped considerably. For more on this continue reading the following article from Property Wire.
The residential property rental market in the UK is flourishing with an additional 58,000 properties being marketed to rent in 2011 compared to the same period in 2010, new research reveals.
By contrast the number of properties for sale dropped by approximately 12,000 in 2011, the research from Experian also shows.
The volume of properties put up for rent increased every quarter in 2011 when compared to 2010 with the third quarter seeing the most significant increase of 14.46%.
A number of seasonal trends were prevalent in both the rental and resale markets with December the least popular time to market a property and the summer months the most common.
May was the busiest month for resale properties added to the market whilst August was most active for rentals, which could be attributed to students preparing for a new term at university.
For the year as a whole, the number of resale properties, some 769,077, taken to market exceeded those that were let out at 692,766. The exception to this was around the Christmas season which was the least popular time to sell a house.
London dominated the rental market with 20% of all UK rentals being based in the capital city. This dropped quite significantly when it came to houses for sale with London only accounting for 10% of appointments. The South West had the highest percentage of For Sale properties at 12.2%.
Wales and the West Midlands saw the biggest increase in houses to let with a 20% rise in numbers in 2011 compared to 2010. The West Midlands also highlighted its dynamic property market credentials by bucking the downward trend in the number of resale properties compared to 2010, with 12% more houses put on the market in 2011.
‘This insight shows that home owners may be using renting as a back up plan if they are unable to sell or alternatively some may still consider property a long term investment,’ said Jonathan Westley, managing director of consumer Information services at Experian UK and Ireland.
‘Being able to paint a picture of movers and get a unique insight into habits and trends is a valuable tool for companies from financial services to utilities and telcos. Moving house can be a catalyst for a consumer to switch to ensure they are getting the best deal from their suppliers. Knowing who these movers are enables organisations to keep in touch with them and maintain and develop relationships at a time when they are most receptive,’ he added.
This article was republished with permission from Property Wire.