Average rental rates 'drop again'

Typical rents have fallen for the second month running, indicating that the rental market appears to be softening.

With rents dropping, this could be the right time to join the market and begin to seek professional accommodation.

On average, the monthly rent dropped by 0.8% on a month before, and was £711 inEnglandandWalesin December. This figure has been calculated from LSL Property Services' latest index.

However, it was predicted that rents are soon to be on an "upward march" again, as potential buyers are still struggling to pull a mortgage together this year.

These figures came as another study, by the Association of Residential Letting Agents (ARLA) discovered that in the final quarter of last year, 55% of its members said there were more tenants than there were available propertie.

This indicates a continuation of "robust" demand, ARLA said.

But the figure is a decrease on the third quarter of last year, when one in three (74%) of its members saw that trend. ARLA's president, Tim Hyatt, said the dip may be because of a traditional seasonal slowdown, but he added: "At the same time, it could indicate a reversal of the surge of new tenants who turned to the private rental sector when they could not afford to buy."

 Copyright Press Association 2012