Rents in North East rising fastest
North East rents are rising faster than any other part of the country according to the latest report from RICS.
The report from the professional property organisation reveals that rents in the North East have risen more than any other area in England, Scotland or Wales.
In the past 12 months average rents in the region have grown by 6.9 percent, compared to the national average increase of 4.3 percent.
Ajay Jagota, North East lettings expert and managing director of KIS Lettings, says that rising rents are a sign of the times and reflect the current boom in the market.
"In the lettings industry we've got more prospective tenants than ever before and, as with any other product or service, demand is leading to an increase costs.
"The report should further assure landlords and anyone looking to invest in property in the private rented sector that the buoyant market is continuing to grow. It's an ideal time to invest.
"At KIS we're seeing more and more tenants continuing their tenancies long after their contracts end. Fewer people are able to make the move from tenant to homeowner, so there's certainly not as much movement and activity in the market as we're used to seeing.
"Despite the rising cost of renting a home, short-term it remains the cheaper option for those unable to raise the deposit needed to secure a mortgage. The boom, therefore, looks set to stay at least for the next couple of years and, most likely, well beyond."
Also this week, the development arm of furniture retailer Ikea, announced that it may move into the lettings market. Alongside its announcement to build budget hotels across Europe, Inter Ikea said it was considering building student residences as it looks for ways to put its cash into long-term businesses in an attempt to earn a good return.
Ajay added: "Times are so good that there's a surge of large institutions eyeing up the lettings market and they will be able provide multiple properties at very competitive prices.
"Their entry into the market could start the beginning of a levelling out of rents as smaller landlords will need to up their game to secure tenants."
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