2.4% Rise in Rents across the UK
20th September 2017Tony Freeman takes a look at the latest figures that show how the rental market is now strengthening – an encouraging sign for landlords looking to invest in property.
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 – the highest rate of annual growth seen this year.
The data, published by HomeLet, reveals how rents performed pretty well across the country. Excluding London, 11 out of 12 regions surveyed recording an increase from last year.
The average rent in the UK on a new tenancy outside London is now £776, up 2.3% compared to the same period in 2016. Rents in the South West of England recorded the highest rental increase, up 3.9% from August last year, followed closely by Northern Ireland at 3.7%.
Rental values in London are still higher than the national average, with average rents in the capital increasing to £1,609pcm. This is the first time that average rents in London have gone over £1,600pcm – certainly an encouraging sign of growth in the city.
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 a 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.”
The latest figures are promising for the property market. Along with the recent 4.7% rise in average property prices, the buy to let investor can begin to breathe a sigh of relief. These are strong indicators that the property market is still growing despite the surrounding political and economic uncertainty. Though as Brexit negotiations continue, we still need to pay close attention to the market as fluctuations are likely to continue.