December additionally had a spike within the number of leases signed, up 40.7 % from December 2015. While the number of leases signed has elevated, the lower in rental charges and landlord concessions has elevated as a consequence of the amount of latest properties being developed and the unwillingness of tenants to signal a brand new lease when they are confronted with worth increases. While competitors should still be current because it at all times does, rest assured that on the web, the enjoying area is leveled. The excellent news in all of this turmoil is that whereas rental charges having been declining, they’re nonetheless higher than they have been the previous yr. If curiosity charges rise, and households will not be able to get house loans, this might significantly impact the rental market. The drawback to this transfer is that the quantity of curiosity paid over the lifetime of the mortgage is elevated – successfully doubled on account of the additional 60 months of repayments.
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