| What Factors may Influence the Rental Market | | | | Take a look at the RRPI by clicking here: - |
| Like any property market the rental market | | | | Residential Rental Price Index |
| prices will fluctuate depending on a number of | | | | How Accurate are the Rental Price Indexes |
| different factors. These influences can depend on | | | | Normally they are fairly accurate; there are a |
| supply and demand factors, are there more | | | | number of factors that need to be taken into |
| properties than demand, this can have a major | | | | consideration which include the number of |
| impact on prices. If there is more available | | | | property that make up the index, the accuracy of |
| property than the demand for rental houses then | | | | the data that is provided in order to calculate the |
| it is inevitable that the better quality property will | | | | index. Usually the calculation for the pricing will be |
| be in demand, plus this can have a factor on the | | | | the total price of all the property divided by the |
| price of these properties. Also if there is less | | | | number of properties. |
| property than demand then this can force the | | | | For example if there are 80 4 bedroom |
| rental prices up for the available property. Other | | | | properties used to make up the index all |
| factors can depend on interest rates and | | | | advertised at £1200 then the average |
| mortgage prices as to whether landlords keep | | | | rental price for a 4 bedroom house will be |
| their rental property or sell the property in order | | | | £1200. |
| to cash in on higher house prices. | | | | Other factors to take into consideration are that |
| Moving to a New Area | | | | the prices are advertised prices and not actual |
| If you are moving to a new area the prices can | | | | rented prices and will include all property in all |
| be vastly different from where you are moving | | | | areas and conditions. It is important to remember |
| from. Factors can be the area that you are | | | | that these should only be used as a guideline and |
| moving to within the country and as discussed | | | | prices in certain areas of a town may be higher |
| earlier the supply and demand of property within | | | | due to the location and demand of property |
| the area. A good way to try to gauge the prices | | | | compared to another area in a town. |
| is to use a rental price index. There are a number | | | | Summary |
| of different sites that can supply data for this | | | | In summary remember that the residential rental |
| area, one is the RRPI (Residential Rental Price | | | | price index is only to be used as a guideline for |
| Index) this uses data from letting agents | | | | property in a town as a whole and there are |
| throughout the UK and provides a breakdown of | | | | external factors that can influence the figures. |
| prices not only for individual towns but also for | | | | Remember that they are advertised prices and |
| property types. Therefore no matter what type | | | | not rented prices and you can still get property |
| of property that you are interested in you can | | | | for less than the average price and make a deal |
| get a guideline of the price that you may expect | | | | with the letting agents in order for you to secure |
| to pay. | | | | your perfect rental home. |