UK rents rise at fastest monthly rate since April 2016

UK rents rise at fastest monthly rate since April 2016 1024 576 NGI Residential Mortgages

The latest rental data provided by Landbay shows that average rents in the UK rose 0.13 per cent in August, the highest monthly increase since April 2016.

On an annual basis, UK rents grew by 0.97 per cent, which is the highest level since May 2017 and, excluding London, 1.25 per cent. This compares to 1.18 per cent as reported a month ago.

Staying on the topic of London, growth was positive inside the capital, withrents increasing 0.44 per cent on an annual basis (0.10 per cent monthly) – the quickest rise in two years.

The data reveals a similar story across the country: in the East Midlands monthly rates grew by 0.32 per cent, in the South West, 0.16 per cent, in the West Midlands, 0.15 per cent, and 0.13 per cent in the East of England. The North East, however, posted a drop of 0.03 per cent.

The average monthly rent in the UK now stands at £1,209, or £767 excluding properties inside the capital.

Landbay founder and chief executive John Goodall says: “Following a slowdown in rental growth the changes are likely influenced by a number of regulatory and tax changes introduced over the past two years.

“As landlords begin to feel the pinch from these changes, combined with a reduction in the supply of new homes, the inevitable consequence is an upward pressure on prices. The government must start to see landlords as a vital part of the UK housing market, rather than an easy target for raising the coffers. Any further changes to regulation or taxation will only end up on the tenant’s door.

“For brokers, this provides them with the opportunity to give expert advice to their clients about changing elements of the housing market and which areas have the most potential in the coming months.”

* Content Source – Mortgage Strategy