A number of tenants have been hit by rent rises over the past 12 months as landlords respond to extra taxes and restrictions in the industry.
The government’s decision to restrict mortgage interest relief to the basic rate of income tax and add a 3% levy on stamp duty for the purchase of additional homes has led to a rise in the number of landlords exiting the buy-to-let market, resulting in an inevitable decline in much needed rental property listings.
An alarming drop in the number of residential properties to rent has added to the widening supply-demand imbalance in the rental market, which is placing upward pressure on rental values.
The latest figures from Hamptons show that rental prices across Great Britain increased by an average of 1.6% to £980 per calendar month in September.
Rents rose in every region across Great Britain, led by gains in Wales, where the average rent is up 3.9% year-on-year, followed by the East (2.8%) and the Midlands (2.4%).
Aneisha Beveridge, head of research, Hamptons International, commented: “Rental growth in Great Britain continues to gradually pick up. Rents rose in every region across Great Britain for the first time since January.
“London rents returned to growth for the first time in four months, fuelled by a pickup in Inner London.”
The data from Hamptons support separate figures from HomeLet, released last week, which revealed a similar level of growth.
According to HomeLet, the average cost of renting a property in the UK rose by 1.7% in the 12 months to September.
Its index, which is based on new lets agreed by landlords and agents using its referencing service, shows that rents in September increased in 11 of the 12 regions monitored by HomeLet, with only the North East seeing a decrease.
Martin Totty, chief executive at HomeLet, said: “The data for September shows that rents UK wide are on average 1.7% higher than the same time last year, which continues the trend we have been seeing throughout most of 2018.”