After a prolonged period of sustained rental increases, average rents are now starting to fall in some areas of the UK. The latest HomeLet Rental Index reveals that the average cost of renting a home in Yorkshire and Humberside decreased by 3.6% during January 2014 to £557 per month. This is also 2.5% less than the same time last year – and the lowest amount recorded since June 2012.
In many inner-city areas in the South West, Wales, Midlands and the North East and West LHA rates are often higher than the market rent. In order for landlords to achieve this higher rent yield, they should move into the housing benefit market, as private tenants will not pay the same level of rent in some areas.
Aki Ellahi, Director of Dssmove.co.uk comments highlights that currently there are over five million people claiming housing benefit and this is set to increase over the next 2-3 years, as we face increased migration, low pay and continued austerity measures from the Government.
“There is a shortage of properties for housing benefit tenants and landlords and agents have a great opportunity to maintain and increase their rental yield in this market .e 2 bed housing benefit rate in Wolverhampton is £450 and many properties are on the open market rent £350 - £400.
The top 10 locations in the UK for housing benefit searches on Dssmove.co.uk over the last three months are as follows:
1. London
2. Manchester
3. Leeds
4. Birmingham
5. Liverpool
6. Newcastle
7. Nottingham
8. Sheffield
9. Wolverhampton
10. Leicester
