Year on year rise in rents
Rents agreed on new tenancies in the UK are up by a tenth in just one year according to the latest research.
The report from Homelet found that the 10% annual increase affected all the major regions with rates rising in almost all areas. Average rents on a tenancy signed during the three months to April 2015 now stand at £916, compared to £833 in the previous year.
The data also went on to show a levelling of rent inflation overall. Looking at a regional breakdown, London saw inflation growth of 7.5%. With London excluded, the rest of the UK saw a 7.4% growth with average rents increasing from £680 to £730 since 2014. This represents the first time in several years that the UK has been at a level inflation rate with the capital, marking a slowdown in the London market with other areas of the UK experiencing a significant rise in prices.
Graham Davidson, Managing Director of Sequre Property Investment comments on the year on year rent rises:
“As predicted, we’re beginning to see other parts of the UK catch up with the likes of London in terms of growth. With rent increases hitting up to 12% month on month in the capital, it’s simply not sustainable.”
“The North West continues to grow at a steady rate showing signs of a healthy economy without prices rocketing. The average rent is £668, which may be slightly lower than the national average, but we know rental yields are far superior to anywhere else in the UK, so landlords are still getting better returns here.”
“The report will come as a reassurance to potential and existing landlords who will have felt the uncertainty prior to this year’s General Election and may have hesitated in purchasing or increasing the rent with fear of changes to the buy to let market. Now that the next five years look positive for the housing economy, we will continue to see healthy growth rates across the UK.”
The demand for private rental properties has never been greater so if you’ve been considering a buy to let purchase, contact Sequre today. We negotiate in bulk meaning our investors get high specification properties at a discounted rate. With a bespoke, end-to-end service, we can recommend mortgage advisors to talk you through the financial process and guide you through your purchase, whether you’re looking to refinance an existing property or are searching for a buy to let mortgage for your next investment. To find out more, call us today on 0800 011 2277.