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The rental prices outside of London fell for the first time since the pandemic to the quarter against the quarter and signal a “key milestone” on the Great Britain’s real estate market after years of rising rents.
The average rent of real estate that goes beyond capital beyond capital fell by 0.2 percent between the third and the fourth quarter of 2024 to 1,341 GBP and marked the first decline since the end of 2019, according to the Rightmove real estate portal on Tuesday.
In London, a marginal quarter growth from 0.1 cents was the lowest of the beginning of 2021 to 2695 GBP.
While modest Rightmove The decline marked a “key milestone” for the market when it ended high rents for many months, which were supported by weakened demand and an improved range of properties for tenants.
In the three years up to the fourth quarter of 2023, rents in Great Britain without London increased by 25 percent, such as the data increased due to higher credit costs and the low availability of real estate.
“A first quarterly decline in rents is the highlight of several months of improving the balance between supply and demand,” said Colleen Babcock from Rightmove.
The demand pressure seems to alleviate on the real estate market, with Rightmove reporting a decline in potential tenant inquiries by 16 percent in the previous year, since some tenants decide to buy houses that have lower mortgage interest and rising wages.
Some tenants also decide to move a strap rather than because of costs.
In addition, the range of rental objects in the last quarter of 2024 improved with an increase in the availability of 13 percent compared to the previous year, as the investigations showed.
Rightmove said that there were indications that some landlords left the market, but other “maybe larger” invested.
However, the average number of applications per rental property was still double-digit, twice as high as in the pre-Pandemic average, which indicates a “very busy” market.
This is preceded by the increase in the stamp service in the budget and the effect in spring. From April 1st, the level at which the real estate tax will be paid will return from 425,000 GBP for first buyers and from 250,000 GBP for others to £ 300,000.
The law on the right of the tenants, which aims to reform the private rental sector and to end “no mistakes”, could also influence the market. But Rightmove noticed “no important signs of an immediate impact” from legislation that could come into force this year.
The Rightmove Miet Price Tracker as well as similar data from Homelet and Zoopla offer a timely indicator of rental trends than the official data, since they pursue new rental contracts rather than all rents.
Rents outside of London were still 4.7 percent higher than at the end of 2023, but price growth has been the slowest annual pace since the beginning of 2021.
In the capital, rental prices rose by 2.4 percent compared to the previous year, the lowest annual interest rate since the beginning of 2021.
Alex Bloxham, partner and head of residential buildings at the real estate consultancy Bidwells, said: “We see a cooling of a violently hot rental market last year, where the tenants have enforced intensive competition and consistent rental inflation.”