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New tenancy rents up 3.7pc

Sarah Davidson

November 14, 2014

This stands at 7.4% in London, where average rents for new tenancies comes to £1,229 per month.

This doesn’t reflect average UK rents, which have risen by 1.7% over the last 12 months.

Nick Dunning, group commercial director at Countrywide, said: “Void period offers landlords the opportunity to re-assess market conditions, make improvements and adjust the rent accordingly.

“Rental growth predominantly occurs when a property is re-marketed and let to a new tenant.

“An increase in rent for someone moving into a new property will filter through to the rest of the market more slowly, as and when tenants move and new contracts are negotiated.”

Rental properties are currently left empty for an average 14 days a year, representing an occupancy rate of 97%.

This time period takes into account the time it takes landlords to find a new tenant and the time needed between tenancies to carry out repairs and improvements.

Due to increased demand properties in London, the South East and the East of England remain empty for less than 14 days per year, while across Wales, the North East and the North West properties are empty for an average of 18 days a year.

Dunning added: “While the level of demand means that the time taken to find a tenant is at a near record low, landlords should still factor in a short period when their property will be empty.

“While voids are often associated with the time taken to find a tenant, in stronger markets property can be re let in advance of it becoming empty.

“Even in these strong markets, time to carry out repairs and facilitate a handover between tenants is a cost which needs to be factored in.”


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