The cost of renting a home in Yorkshire and Humberside has risen by more than two percent in the last year as many would-be buyers continue to find themselves locked out of the sales market, says the latest RICS residential lettings survey (May-July 2012).
Renting a property in Yorkshire and Humberside has grown in cost by 2.5 percent over the last twelve months, according to chartered surveyors across the region. Given the problems affecting the sales market, perhaps unsurprisingly, this trend looks set to continue as respondents also predict rents to continue to grow by more than two percent (2.2) over the next year.
The upward march in rents in the region continues to be underpinned by a shortage of good quality properties for tenants to move into. In the three months to July, the amount of new properties coming on to the market dropped with 18 percent more surveyors reporting falls in new instructions to market.
Meanwhile, demand continues to grow in Yorkshire and Humberside, as 14 percent more respondents reported rises rather than falls in interest from potential tenants (from +19 percent). Significantly, the increased demand has outpaced the change in supply for a second consecutive month this year.
Unsurprisingly, with rental values steadily increasing, gross yields have continued to edge upwards during the early part of the year, which has contributed to fewer landlords (4.2 percent) opting to sell their properties at the end of the tenancy.
“While tenant interest is still riding high, what remains to be seen is whether people are willing to meet the increasing rents being demanded by landlords,” says RICS spokesperson Bruce Collinson.