Rents in the private rented sector continued to rise in July, hitting an average of £846 across England and Wales, according to the latest buy-to-let index compiled by Your Move.
Tenants in the private rented sector have seen an increase of 5.2% year-on-year, which may help explain why confidence among landlords remains positive with 72% of landlords still looking to add to their buy-to-let portfolio despite the introduction of the 3% stamp duty surcharge in April, the recent Brexit vote and the fact that mortgage tax relief is set to be phased out from next year.
The most significant increase in rent costs was in the South East of England, with the average price in this region up 14.9% compared with the July last year. The rise was driven by a ripple effect from the high monthly rents in the capital, where there remains a severe housing shortage.
London remains the most expensive place to a rent a property in the UK by far, with the average monthly rent at £1,273.
Adrian Gill, director of Your Move, said: “The UK’s vote to leave the European Union has not caused any immediate change in the rental market, although we must wait for longer term trends to develop.
“For landlords, market sentiment remains positive with the vast majority still looking to add to their portfolio of properties, despite the Brexit vote.”