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UK rents on the rise again

Rental prices increased by 2% in May compared to the same month last year, the latest HomeLet Rental Index shows.

The average rent agreed on a new tenancy signed in May was £919 per calendar month (pcm), up from £918 a month earlier, the data from the insurance firm reveals.

When London is excluded, the average UK rental value was £763pcm in April, which is up 1.3% on last year.


On an annualised basis, rents rose in 11 out of the 12 regions of the UK covered by the research. But five of the regions identified by the HomeLet Rental Index data actually saw rents fall from April 2018 to May 2018: Greater London, Scotland, the West Midlands, the East Midlands and the South West.

The latest rise in average rents will be welcome relief to many landlords who have been adversely affected by the perfect storm of tax changes and political uncertainty.

Given that many landlords face further increases in their costs, owed in part to the phasing out of mortgage interest relief, it is highly likely that rents will increase further.

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    the last paragraph says it all, '' landlords face further increases in their costs'' it's not rocket science costs increase = rent increases.

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    • 07 June 2018 09:52 AM

    Well at this risk of getting boring about this. I am a landlord with double digit portfolio and I have gone from a gentle relaxed position on rents to now an aggressive rent raising posture. So my rents are sharply increasing all the time. This is not profiteering. It is simply to recoup the huge increases on costs and taxes that have been plied onto the PRS sector. In order to remain in the same position before the government turned its wrath on landlords, my rents are going to escalate constantly at an accelerated rate. My accountant has told me I am already turning cash negative and to act with great urgency to charge every possible extra pound that I can. I would presume all,other landlords with borrowings in their portfolio are having similar conversations. And we are only half way through the section 24 implementation. So in two years time my rents are going to be massive. They will HAVE to be. Quite bizarre how tenants seem completely untroubled or blissfully unaware. A storm is coming.


    As a landlord with a triple digit portfolio, I can say that I am now doing precisely the same (even though I have barely made any increases in the previous 10 years).

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    It'll be interesting to see how S.24 pans out. Whilst increasing rent to cover increasing costs is perfectly logical the reality is that a lot of renters are already at the limit of what they can afford. Of course landlords can find new tenants able to tolerate increased rents but my guess is this approach can only go so far, and that eventually the market rather than landlords will start dictating how far rent increases can go.

    • 07 June 2018 11:20 AM

    Our tenants have BMWs, and still enjoy high living. I don't have a BMW though. There is PLENTY of elasticity in rents. They have a looong way to go yet.

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    Incorporation using BICT is the way forward if you are in a partnership

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    • 07 June 2018 11:18 AM

    I think HMRC are doing their final polishing on their attack planning on incorporation solutions already. Cat and mouse. And we're the mice.

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    Who knows I’m starting to sell in anticipation

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    • 07 June 2018 12:16 PM

    As landlords sell up, through the laws of supply and demand alone, rents will tighten up more. Add to that us remaining landlords are leaning on rents now as well, adding yet more pressure on top. Section 24 - What a shambolic and outrageous mess.

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    Where have you heard that LTD will be attacked using s24 ?


    The body responsible for reforming the UK tax system has suggested taxing dividend income at the same rate as other personal incomes – a move which could significantly hit landlords using limited company structures.

    The Office of Tax Simplification (OTS) proposed the change within its review of savings income as a “more radical option” to help ease the process of tax self-assessment.

    On examining the taxation of savings and dividend income, the OTS noted that the number of rates and allowances for personal savings and dividends is a significant cause of complexity.

    “Cutting one or more of the reliefs would be one way to simplify matters, but it would be important to ensure that there are no unforeseen negative consequences,” it said.




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