x
By using this website, you agree to our use of cookies to enhance your experience.
STAY CONNECTED!
    
newsletter-button

TODAY'S OTHER NEWS

Rents record biggest month-on-month rise in over two years

Rents have had their biggest monthly increase for 28 months, led by gains in the East Midlands, according to the latest Landbay Rental Index.

The average rental value increased by 0.13% in August, the biggest month-on-month rise since April 2016, with the East Midlands, at an average of 0.32%, posting the highest monthly rise for an English region in 40 months.

The increase pushes the average rent paid for a property in the UK up to £1,209 per month, dropping to £767pcm if London is excluded.

Rental growth on an annual basis also showed signs of a sustained recovery, with rents across the UK increasing to 0.97%, the highest level seen since May 2017.

Rental growth in London continued to show a marked uplift last month, having been in negative territory for more than a year before the first positive movement in April 2018.

Rents in the capital increased at the fastest pace in almost two years, rising to 0.44% in the year up to August 2018. However, it is still some way off the average annual growth rate of 1.36%.

At a London borough level, rents have risen in 27 of the 33 boroughs over the course of the last 12 months.

Four of the London boroughs exceeded the average annual rental growth rate, including the City of London (2.25%), Bexley (1.48%), Southwark (1.48%) and Lambeth (1.44%)

John Goodall, CEO and co-founder of Landbay said: “The figures point to a possible start of sustained rental rises in the UK. Following a slowdown in rental growth the changes are likely influenced by a number of regulatory and tax changes introduced over the past two years.

“As landlords begin to feel the pinch from these changes, combined with a reduction in the supply of new homes, the inevitable consequence is an upward pressure on prices.

“The government must start to see landlords as a vital part of the UK housing market, rather than an easy target for raising the coffers. Any further changes to regulation or taxation will only end up on the tenant’s door.”

Poll: Do you think the figures from Landbay point to a possible start of sustained rental price increases in the UK?

PLACE YOUR VOTE BELOW

  • icon

    as the added costs to landlords filter through rents will continue to increase, that's how it works with any business isn't it?

    icon
    • 07 September 2018 10:57 AM

    Totally

     
    icon

    No, Andrew, it is not. The price is set by the interaction of the market forces of supply and demand, operating through the price mechanism. It has nothing to do with costs. If landlords could increase rents at will, why do you imagine they have not already done so?

     
  • icon

    I find it hard to believe that dramatically increasing tax on "one in five" landlords would lead to increased rents, who could possibly have predicted that outcome?

  • icon
    • 07 September 2018 09:49 AM

    Section 24 and other anti-landlord legislation is filtering through to the end user. Quelle surprise! We have been pushing rents up constantly and will continue to do so in order to try to salvage some solvency back from the massive section 24 tax hike that is now in place. Our accountant has already told us to adopt brace position in readiness for a huge tax bill this year and much bigger ones to follow through due to section 24. So obviously we have had to abandon our previous philosophy toward our tenants which was to be very gentle and hardly ever touch the rents. We are now cranking the handle wildly in order to keep our portfolio afloat. All I know is that under this trajectory rents are going to go flipping ballistic. The PRS sector is going to blow up at this rate.

    icon

    Can you not incorporate ur portfolio ?

     
  • icon

    or pay down the mortgages?

    icon
    • 07 September 2018 10:44 AM

    Is a 70/30 loan to value model. Need a lottery win, or sell assets...and get huge CGT bill as well as killing of some of my ( beautifully managed) portfolio. Being in this country is like being in the old Soviet Russian world.

     
  • icon

    Incorporation for many landlords with portfolios would cost hundreds of thousands of pounds - so not a simple solution.

  • icon

    Not if you use bict ?

    icon
    • 07 September 2018 10:44 AM

    Tell me more

     
  • icon
    • 07 September 2018 10:41 AM

    Incorporation? Monstrous capital gains liability which would also require to be satisfied within 30 days of completion and I am talking HUGE capital gains charge. ( I know that this will always become due at some point but I want to choose my own exit strategy not have it dumped on me by government philosophy). I have already written to Mrs May and Philip Hammond separately (yes I am talking paper and envelope) and had the same standardised letter back in response which in all fairness did not address any of the issues in any remotely cogent way.

    Incorporation also means stamp duty etc. So adding all these things up means incorporation implausible. I am also getting stories of HMRC considering special treatment of property companies-so you know what that means. Paying down debt requires an awful lot of cash and of course anyway, the buy to let model is one which makes use of sensible leverage principles, optimally orientated at 75/25% loan to value ratio at the very most.
    So the only residual course of action is more and more and more rent. This is obviously completely unsustainable as a general philosophy. I can thus surmise that myself and all our tenants (50 +) are in a large canoe accelarating towards Niagara Falls. Only I don't think the tenants realise this yet. I haven't the heart to tell them. Maybe I should? Then they can petition the government.

  • icon

    Not using bict capital gain rollover and you get incorporation relief so no SDLT if you a running your business through a partnership

  • icon
    • 07 September 2018 11:22 AM

    Ok so if theres. link for that I'd be interested! Thx

    icon

    Property118.com/tax

     
  • icon

    If u can get your direct details to me somehow I will call you and point you In the right direction it will be a no brainer for you how many have u got ?

  • icon
    • 07 September 2018 13:10 PM

    Double digits
    Cyberpete@protonmail.com

  • icon

    Sent email

icon

Please login to comment

valpal
submit
sign up