The average rent in England and Wales dropped by 0.3% in January from the month before to £682 a month.
Although tenant arrears also declined, 11% of all UK rents remained in arrears in January, the group said.
Read the full story here Rental costs and arrears falling
NetRent Comment
These falls are marginal and the percentage of tenants in arrears remains worryingly high at 11% of all rents. Rents are almost certain to rise as interest rates rise and demand continues to increase. There is some good news in that more Buy to Let mortgages are becoming available, including the first 85% LTV since the banks got into difficulties.
Our advice to landlords is to first ensure that your rent gets paid. Thorough checking of prospective tenants, rent guarantee insurance or guaranteed rent payments such as Rent on Time are essential.
Second, landlords need to ensure that their rents remain competitive within the local market whilst at the same time covering their costs. For example, what would happen if interest rates went up by 2% or 3% this year?
Third, now is the time to start checking mortgage availability to ensure that you have the most competitive mortgage possible. Interest rates are bound to rise, the only questions are by how much and when?
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