Rents are up year-on-year across all regions, according to the property website Home.
The mix-adjusted average rise across the UK is a huge 18.8 per cent, says the website. Supply is worsening in this sector, with newly available rental properties down by 24 per cent now compared to a year ago.
Rents in Greater London continue their upward spiral. High demand and falling supply of available properties to let has pushed up annualised rental growth a striking 27.6 per cent.
The mix-adjusted average monthly rent in the capital region is now 25per cent higher than in pre-Covid June 2019.
Central London rents continue to set new records as supply plummets. Aside from the City (up 51 per cent), the greatest rises in asking rents over the last twelve months are now in Lambeth (up 44 per cent) and Hackney (up 43 per cent).
On the sales side, demand remains high and is increasing in London and the North East.
Stock levels remain very low by historic standards and consequently prices continue to rise rapidly across all regions. The supply of new instructions entering the market nudged up slightly this month as more potential vendors are tempted by record prices.
Home claims that the Bank of England’s efforts to tame inflation are not working.
“Even by their own preferred measure (the Consumer Price Index), inflation is now 4.5 times their target rate and climbing. Of course, the unprecedentedly large and widening spread between mortgage interest rates and inflation specifically incentivises highly leveraged property purchases” says the site.
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.
If any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals, then the post may be deleted and the individual immediately banned from posting in future.
Please help us by reporting comments you consider to be unduly offensive so we can review and take action if necessary. Thank you.
Rental growth continued to cool in February, says the latest market...
Another rental market snapshot suggests that London is suffering an oversupply...
Rents continue to rise rapidly in every English region, Scotland and...
Rents are up significantly in all regions and most notably in...
The vast majority of tenants are unaware of new laws introduced...
Despite the recent tax crackdown, buy-to-let continues to look an attractive...
The property market had enjoyed a boost thanks to the outcome...
There wasn’t much by way of good news in the Spring...
National Landlord Investment Show has announced that the former Leader of...
Twenty twenty-four is a pivotal year for landlords in the Private...
The management of BTL properties, whether it's a modest collection of...
We are thrilled to report that the first National Landlord Investment...
If interest rate rises weren’t enough to drive landlords out the...
Landlords play a crucial role in providing safe and comfortable housing...
.jpg)
Calling all landlords, Investors and property professionals: National Landlord Investment Show...
A recent survey by digital mortgage lender, Molo, revealed that nearly...
In the buy to let market, success goes beyond the transaction...
Mohammed Sharaz, a landlord from Bradford, recently seized an opportunity to...
We believe a well-functioning housing system is one that meets everyone’s...
It’s not just the weather that’s wet and dreary – the...
As the ‘big buy-to-let’ sell off gathers momentum, we take a...
The challenges facing the property market right now are well reported;...
If you are a landlord looking for the silver lining in...
This year is set to bring sweeping rental reforms that will...
Landlords are exiting the market in droves. According to an accountancy firm...
%20(002).png)
Newable Finance, the finance brokerage & advisory arm of Newable, launches...
As landlords continue to exit the market, there seems to be...
Homes in the rental sector are more likely to have old...
A council has prosecuted a landlord for letting out two HMOs...
The Labour-led government in Wales has issued a consultation proposing the...
Another council is looking for landlords with rental properties to match...
Another council is looking for landlords with rental properties to match...
.png)
Landlords and renters’ activists are at either end of the spectrum...
A prominent lettings sector expert is blaming the media for anti-landlord...
Who are you and what does it say on...
Who are you, and what does it say on...
Who are you? I am the Head of Broking for...
Join the conversation
Jump to latest comment and add your reply
Good news at last
Indeed, thanks to Shelter, Generation Rent et al I can now increase my rents beyond my wildest dreams. My thanks to all the tenant campaign groups and HMG for making this possible.
Not for tenants…. Or the government when said tenants find out they have been sold a pup and lied too in regards the reform white paper.
Labour wants rent controls in addition to the tenants having security of tenure. The result of that, of course, will be a further drop in supply (as even more landlords sell up) and we are back to a tiny private rental sector as in the 1970s and 1980s with local authorities unable to cope with the homeless.
The best way to help tenants is for supply to outstrip demand - that way landlords will let to families, people with pets, people on benefits etc without any compulsion - and rents will drop dramatically.
The Government should be thinking how they can achieve that state of affairs. They should encourage landlords to stay in the sector and enter the sector, not drive them out.
The only solution to the problem is to introduce rental reforms which landlords can live with - and that is not what is contained in the recent white paper on rental reforms at all.
Both the Government and Shelter have misunderstood what it is like to be a small landlord - it is burdensome. And once control of one's property is completely lost then it is not prudent to remain as one at all,
.
Sounds like you are making a very wise investment abroad Shelley - and one that you will enjoy too!
Well done Shelter, Generation Rent, Acorn, Government Anti-landlord Regulation’s, Policy’s & licensing Schemes that’s what your meddling does distorts the whole market, damaged the economy. The eye watering are the tears, the heart break comes later with the collapse.
Govt interference in both sales & rental markets has resulted in a housing crisis. Both are becoming unaffordable for a large section of society as Govt has interfered with the markets (S24, SDLT, etc) whilst failing to actually build enough houses for our growing population. They then lay the blame at the door of small LLs whilst encouraging the big BTR boys which push people into ever more expensive territory. The complete lack of understanding of both markets in Govt is astounding.
Government are not that stupid, they know exactly what they are doing. They behave as though all landlords are like deep-pocketed businesses and millionaires because they think that these are the only people that should be renting out property, not silly little landlords.
That might be what the Government wants, but it doesn't tally with the data. A 2018 survey showed that 94% of landlords were individuals - compared with only 65% in 2001.
The Government wants to win votes, but they are going the wrong way about it.
Eye watering increases in landlord costs = eye watering increases in rents, it's not rocket science is it, and inflation is only the tip of the iceberg, Gove's white paper and EPC C will massively increase rents
Andrew in our area Nottingham a standard 3 bed ex council 60s built home has risen from 600pcm to now 900pcm and still rising. Although it is good for us it makes me really nervous about the amounts people can actually afford. I have to put my rents up as the mortgage companies are saying our rents are too low to remortgage or to forward advance so we have to ask for more just to finance productively. I do worry about this as when they do bring in the EPC C rating (which is more important to them now the costs of fuel is so high) then how will landlords fund it if the banks won't lend? I am an EPC Assessor and have sold one of mine last week as it would have cost 10k to achieve this on a rent of only 550pcm. In essence I have had no choice really and reinvested in Spain. My retirement fund has now been rethought out and I can not afford not to act now. I had been carefully building a great portfolio here over the past 15 years but now it will all be sold off as tax efficiently as possible instead. It will take me a while but better than sitting tenants and my equity depleting by the day.
Shelley, I have an ex council house just like yours built 1953 in Norwich, I have a lovely retired couple in there who have made many improvements themselves, rent paid every month never a problem, but I have a similar problem to yourself, whilst not mortgaged ,but they are only paying £565 a month, a similar house just down the road just let for £900 per month, my tenants can't afford that, at present £565 is still a good return on what I paid 10 yrs ago, £74k + around 20k in works, But what happens when EPC C comes in ? well they likely won't be there then as they are getting older and the lady sadly has the big C .
Andrew and Shelley - I will be in this position If the EPC C comes in, i to will be selling, Shelley mentioned that the banks may not lend to improve a property to the C rating? That is fine with me as I am not wanting to borrow !!! I am looking to retire and lending more makes no sense on the rent I am getting…. Sell, sell, sell !
Same, here - five Victorian terraces that are really going to struggle to get to an EPC of C so if it does come in, we will be selling up too.
We tried to keep the rents low as it was still a good yield for us, but had to put the rent up because, believe it or not, when we advertised at a lower rent we didn't have any applicants! Since then the mortgage company now checks the rents and recently we tried to sell one property with a sitting tenant but couldn't because his rent was too low for anyone to consider it - even though we were asking quite a low price for the house so we didn't have to evict an elderly man with dogs... unfortunately he has now been given notice as we need to sell and the council won't help him because of the dogs!
I agree Simon it's not worth borrowing to get up to EPC C , If I up grade any of mine it will be done so with my own money, but I will only be making that additional investment if I consider it worth my while doing so, other wise it's sell one per year
You are a good landlord like most of us. This is what the government just do not hear. Its a crying shame all round. I got flowers from one of my tenants last month when they moved for being such a good person and a letter recently thanking me for housing a young couple for the last 9 years who were under 25 with 2 very small children when no-one or the council would help them. All this will go away and tenants will end up in very poor government accommodation. With high rents. That's what they want the funds in and control of the tenants.
Nottingham rents have increased due Wholesale Selective Licensing . The Renters Reform Paper issued last week Exemplified the Results of the Nottingham Scheme. in their Paper last week. But completely ignored the consequences , Rents Rising, and Nothing to rent if you can afford the rent.
It depends on how the Government and Councils are measuring Success.
I visited Nottingham yesterday and the Two People working behind the Counter informed me they had just had a £200 pm rent increase .
Surprise Surprise, the government, Shelter, Generation Rent etc now reaping that what they have sown.
The lack of self-awareness of Shelter, GR, Acorn and the government is hilarious. They all campaign hard to get rid of landlords then look absolutely appalled when they go and rents rise accordingly. Just brilliant, seeing the expressions on their ignorant little faces!
I am in a similar situation with an ex RAF house, similar construction to council house of the era concrete beams etc which had to be completely rebuilt with new footings and cavity walls, steel beams etc. Rent £750 per month , value now in excess of £250k but can't remortgage as rent not high enough to support further lending! Current lending less than 45% LTV. Cornish problem as same house in other parts of the country could probably be bought for £150k Local agents value current rental value at £850-875.
So rents have to rise! Tenants have only been in just over 12 months, rent on the dot every month but what can I do? I need more and more finance to continue going forward due to inflationary costs for mortgages and both materials and building labour costs, to say nothing of purchase prices for suitable properties.
As much as I would like to buy more, I don't think it would be wise to just at present
Paul, you must be mad to consider going further. All our political parties are Marxist,a euphemism for communist. Since most of their sponsors are from the east, of whom we are at war with, they will be undermining our culture even more than normal.
Hi Edwin
I am still in the process of completing a new build project for two new dwellings so have to go on and complete them.
Too much invested now not to complete it.
All part of the politics, blaming Right/Left/Other parties ⭕️.
London Housing (TFL, Roads, Terrorism etc) & generally this beautiful city has deteriorated since the current mayor was elected by gullible locals.
Labour, Lib Dems council’s & Shelter’s caring (sarcasm intended) attitude to keep tenants in social unsafe homes resulted in Grenfell and multiple other disasters with unfortunate losses of human lives.
Now Labour Mayors, Lib Dems, Green and some Conservative croonies along side many ‘Lords’ investing in BTR - then will use Rent controls for votes 🗳- all political circus 🎪⭕️.
Agile Landlords with sufficient availability of cash flow/credit markets & ideally political influential contacts in the local councils will survive with no probs, others would struggle especially as soon as BTR buildings are fully operational & controlled by the council/govt.
I live near a BTR building, currently privately owned in Greater London. Homes are empty
since even the cash rich 🤑 young bankers (one of them being my ex tenants) can not afford £2,200 plus bills & service charges rent for 1 bed apartment.
Based on the ‘Homeless’ tenants feedback, the council has sent a ‘consultation’ to local area residents/tenants acquire the building under ‘CPO’ to pay what the council thinks the value is = peanuts to the private owner.
The building owner is unfortunately having to fight a costly battle in court. Here is hoping that he wins against the council and shelter to make English law at least a little bit fair towards PRS-Commercial landlords.
Best wishes to all good PRS landlords & sensible tenants.
Mr Bhalla
Yes, that's about the size of it. Unfortunately enterprising people like yourself are regarded as easy meat by most politicians.Really the PRS sector is a fantastic success story, especially for small businesses. However a bizarre conservative government has completely screwed up the PRS housing market by a massive increase in immigration and putting illegal immigrants in 4 star accomodation, all expenses paid.
Mr Bhalla, This BTR property investment gone sour, please advise of its location. We need to publicise this so investors can see the risk they are taking. In my opinion these BTRs will become like the sub prime crisis, which will require a tax payer bailout.
Agreed they are a disaster waiting to happen
Andrew, dead right, look at the number of tower blocks councils have demolished! And of course the governments zero carbon policy killed a lot of people at another tower block !
Guys,
When have govts. (political parties of different shades AND the public sector employees) ever considered the greater good of the country. They are so myopic it is unbelievable, even though it has been happening for years. A key issue is also there are too many career politicians and career clerks (civil servants). They are still in the "Maya" (delusionary) world of the 19th and very early 20th century when the income from colonies helped with the spend! It is high time they get real, (Ha, Haa that will never happen) as these measures are vote losers!!
Also look at HS2 project originally costed at £35 billion, dead cert to end at nearly 3 to 4 times that amount! Who does it benefit > mostly a handfull of civil servants and MPs (paid by the tax payer funds). It was clearly mooted to hand big money out to some big companies and friends of some political parties!! It would be generous to say only some 5 to 10% of MPs and govt. clerks are worth the money they get paid??
Sitta
The empire was a big drain on Britain. British working people had an awful time during this period. However Britain kept the world relatively peaceful for approx 200 years. I unfortunately most of the colonies destroyed their rapidly increasing standard of living by population increase.
Edwin,
I agree and add that the then Britain did a lot of good things for the colonies, but the various countries that obtained independence ruined their development opportunities by a great deal of infighting, separatist pursuits, population increases, mis-managed govt and corrupt practices, with one exception Singapore. It is almost certainly true that the British ruling class exploited its own people as well!
Please login to comment