A ‘welcome relief’ for landlords as rents rise by 2.4% in August

A ‘welcome relief’ for landlords as rents rise by 2.4% in August

Todays other news
A consultation is being launched today....
The figures come as the Bank of England cuts base...
Dog numbers are rising and lettings sector suppliers are anticipating...
Demand picked up in January after the festive slowdown -...
In total the landlord's bill is some £14,000...


The rental market remains firm despite the various economic and political headwinds the sector has faced recently, the latest data shows. 

Newly released figures from the HomeLet Rental Index, widely considered the most comprehensive data available on the UK’s private rental market, reveals that the average cost of a new tenancy in the private rental market in August hit £939 per calendar month, up 2.4% compared with the £916pcm recorded in the corresponding month last year. 

According to HomeLet, rents continue to rise in almost every area of the country, with 11 out of the 12 regions surveyed recording an increase over the year to the end of August, with the South East the only region to see annual rents fall, down 0.2% year-on-year.

Rents are rising fastest in the South West of England, up 3.9% year-on-year, followed by Northern Ireland (3.7%). 

However, rental values in London remain significantly higher than the rest of the UK, at an average of £1,609pcm – the first time rents in the capital have been above £1,600pcm. 

 

When London is excluded, the average rent in the UK is £776; up 2.3% year-on-year.

Martin Totty, chief executive of Barbon Insurance  Group, HomeLet’s parent company, 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 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.”

Totty added: “Whether the recent strengthening in rents achieved, seen generally across all regions of the country, is driven by more robust demand or by some restriction of supply is hard to judge. Either way, landlords will only be encouraged to invest in property over other assets if they’re convinced they can achieve reasonable returns. If not, then the supply of rental properties could become constrained.

“Many landlords still face further increases in their costs and so will need to find a new equilibrium between their legitimate required returns and affordability for tenants. It seems the elements in solving that particular equation become ever more complex.”

Rental figures from the August 2017 HomeLet Rental Index

Region

Average rent in August 2017

Average rent in July 2017

Average rent in August 2016

Monthly variation

Annual variation

South West

£838

£823

£805

1.8 %

3.9 %

Northern Ireland

£634

£625

£610

1.4 %

3.7 %

West Midlands

£693

£680

£670

1.9 %

3.3 %

East Midlands

£617

£620

£597

-0.5 %

3.2 %

North East

£538

£526

£524

2.3 %

2.7 %

East of England

£926

£919

£901

0.7 %

2.6 %

North West

£703

£698

£685

0.8 %

2.6 %

Greater London

£1,609

£1,564

£1,569

2.9 %

2.5 %

Scotland

£629

£630

£616

-0.1 %

2.0 %

Wales

£626

£613

£615

2.1 %

1.8 %

Yorkshire & Humberside

£630

£625

£621

0.8 %

1.5 %

South East

£1,028

£1,025

£1,030

0.3 %

-0.2 %

UK

£939

£925

£916

1.5 %

2.4 %

UK excluding Greater London

£776

£769

£759

0.9 %

2.3 %

Notes:

 

Based on new tenancies in August 2017

Based on new tenancies in July 2017

Based on new tenancies in August 2016

Comparison of average rent in August 2017 and July 2017

Comparison of average rent in August 2017 and August 2016

 

HomeLet Rental Index Regional Variance Figures for August 2017

UK regional breakdown_0817_sm (002)

 

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Landlord Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
Recommended for you
Related Articles
Dog numbers are rising and lettings sector suppliers are anticipating...
Landlords are quitting because of the Renters Rights Bill...
The activist group says it all leads back to rent...
Octane Capital says past talk of an exodus was overblown...
The tenant was in hospital when he was evicted illegally...
The controversial proposal is backed by the Welsh Government...
Growing arrears, falling yields and new laws make 2025 a...
Recommended for you
Latest Features
More 'hobby landlords' will drop out this year, leaving more...
The Bill enters the Lords with a debate on Tuesday...
Edinburgh has long been one of the UK's top property...
Sponsored Content

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here