Increase in Rents for Smaller Properties

Increase in rents for smaller properties

In the last three months as reported by Lonres, the renting sector of this country is booming, with a grand total of 22,045 different properties being rented out to tenants. This corroborates with a 25.4 per cent yearly rise in the stock number of rents in Britain. Perhaps due to the increased influx of young people deciding to go ahead with higher education despite the reported rise of tuition fees and cutting of student grants,  single bedroom rented properties showed the largest increase from the previous year by no less than 4 per cent. The prediction for the amount of rented student properties was extended by 8 per cent beyond the initial forecast for the fiscal year. Chief Executive Officer of London Central Portfolio (LCP) Naomi Heaton comments that tenants are much more conscientious than ever before with finding affordable housing and therefore frequently opt for the cheap solitude of the single rented bedroom. This, she adds, is equally the same for businesses renting space for stock, as the amount of government cuts and the overall fiscal misery of this year’s economic climate have forced many businesses to tighten their purse strings and opt for smaller space. Experts also believe that this is due to the changes in Stamp Duty that have convinced many businesses to start renting smaller spaces around the country. In correlation with this, the demand for larger, two bedroom properties has considerably dropped by 2.2 per cent at re-let figures. Equally, the amount of more costly rented space ranging between 1 thousand and 1 thousand 500 pounds has decreased by 8.1 per cent. Despite the taste therefore this year for smaller, cheaper properties, Naomi Heaton of London Central Portfolio Ltd emphasizes that landlords nevertheless need to ensure that the high standards that they reserve for larger, more luxurious properties should be maintained for their smaller properties as well.

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