Report issued by Landbay
A report issued by Landbay the data shows that average rents in the UK rose 0.13 per cent in August. The data shows the highest monthly increase of rent’s since April 2016.
The Landbay report shows on an annual basis, UK rents grew by 0.97 per cent. The highest level since May 2017 and, excluding London, 1.25 per cent. London, growth was positive inside the capital, with rents increasing 0.44 per cent on an annual basis (0.10 per cent monthly) – the quickest rise in two years.
Inevitable that the rents would start to climb
Mr Hanson Mr the British Landlords Association said “it was inevitable that the rents would start to climb as the letting sector shrinks, its a simple matter of supply and demand. Landlords are selling and leaving the market. So we have less property available for rent and demand is rising.”
The national average monthly rent in the UK currently stands at £1,209, or £767 excluding properties inside the capital.
Landbay data shows a similar story across the country in the East Midlands monthly rates grew by 0.32 per cent. In the South West of the country, 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 places like Grimsby and Hull, posted a drop of 0.03 per cent.
Grimsby currently has more than sufficient properties that are available to rent. So to see a small in rent is not surprising.
Reason for rents going up? Regulatory and tax changes
Landbay CEO Mr John Goodall has said: “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.”
A raft of data is going to be released from different sources within the next 6 months and this will make interest reading to see how the letting market is copying with the governments tax and regulatory reforms.