New data published by HomeLet Rental Index reveals that rents in the UK rose by an average of 2.4% in August. The average cost of a new tenancy in the private sector increased from £919pcm in August 2016 to £939pcm in August 2017.
According to HomeLet, who are widely considered to provide the most comprehensive data on the UK’s private rental sector, rents performed pretty well across the country, with 11 out of 12 regions surveyed recording an increase from last year.
Rents in the South West on England recorded the highest rental increase, up 3.9% from August last year, followed closely by Northern Ireland at 3.7%.
London continues to dominate in rental price inflation, with average rents in the capital increasing to £1,609pcm – this marks the first time that average rents in London have gone over the £1,600 mark, being significantly higher than the rest of the UK.
Commenting on the research, HomeLet’s Chief Executive Officer, Martin Totty said: “Whilst we’ve often observed a seasonal uplift in average rents at this time of year, there’s evidence of a trend now emerging which points to a reversal of the declines seen over the early part of this year. This will be welcome relief to Landlords who have been battered by the perfect storm of tax changes and post-Brexit uncertainties. Whether the trend continues or represents only temporary relief from the headwinds faced by property owners, the remaining months of 2017 should provide the answer.”
This news, coupled with the recent 4.7% rise in average property prices, is certainly encouraging for landlords. This demonstrates that the property market is still growing and that there is still demand from tenants who are willing to pay more for rental accommodation.
As Brexit negotiations continue, the property market still needs to be observed closely, with fluctuations expected well into next year.
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