Rental growth continued to cool in February, says the latest market snapshot from lettings agency Hamptons.
Last month, the average rent on a newly let home in Great Britain rose 7.1% year-on-year, down from 8.3% in January and a peak of 12.0% in August 2023.
Even so, rental growth is still running faster than inflation and increases mean the average tenant moving into a new property would pay an extra £87 pcm or £1,044 a year more in rent than if they moved last year.
These affordability pressures combined with more homes on the rental market have slowed rental growth. There were 30% more homes available to rent across Great Britain last month compared to the same time last year when stock levels reached rock bottom.
However, this predominantly reflects the fact that homes are taking a little longer to let, rather than a rise in landlord purchases. Compared to February 2019, there are still 41% fewer homes to rent.
Scotland recorded the biggest rent rises last month. The average cost of a newly let property in Scotland, which isn’t subject to rent caps, rose 11.0% year-on-year. Scotland is one of only two areas (including the East of England) where rents are still rising at a double-digit pace.
This suggests landlords are using vacant procession to bring their rents up to market rate.
Aneisha Beveridge, Head of Research at Hamptons, says: “The pace of rental growth continued to cool in February. But rents are still some way off falling annually and tenants continue to feel the squeeze.
“Lower mortgage rates have meant landlords needing to refinance in 2024 are seeing a smaller adjustment in their mortgage costs than those who remortgaged in 2023. This is slowly helping to balance mortgaged investor’s books.”
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.
Rents are up year-on-year across all regions, according to the property...
Buy to let landlords are increasingly looking to the highest yielding...
Rents across Britain continue to bounce back according to the Hamptons...
The Hamptons lettings agency says the rate of annual rental growth...
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...
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
I wonder why these rents have increased.🤔 If only someone with experience could tell us.😂😂😂
Indeed it’s one of life’s little mysteries 👻 , I can bet our government will work it out 👍🏻😂👍🏻
Section 24 is ensuring rent increases are baked in for the foreseeable.
Until October 2022 I almost never increased rent for existing tenants. Due to initially the utility price rises and now huge mortgage interest rises plus Section 24 rents have to increase by whatever the market will stand. The increases aren't actually covering the increased costs and extra tax and it's going to take several years before they might.
Exactly. Same here. Rents only went up significantly with a Tenant change. Not now. Every year there is and will be rent rises as needed.
Same here Sarah, mine normally only increased with tenant change, now I'm increasing rents yearly
Amazing that is four people saying the same thing, rents never went up unless a tenant change.
All going up every year now by at least inflation.
Mine too!
S24 has caused hardship to all. I’m quite bitter about it as I know some of my long term tenants can barely afford the rent. Special place in hell for George Osbourne
Yep, yearly increases for me from now on 😬💵
There are a lot of LLs who are playing catch up on rents, having been caught out by big mortgage increases. Rent rises are going to continue to keep rents at the top of what tenants can afford for several years as LLs try to balance their books again.
Yes Tricia, I'm one of those playing catch up many of mine are far too low, increase a bit this year and a bit more next year
As Jo says, Section 24, Section 24, Section 24.
A truly devious measure that still leaves many landlords baffled. They know it hurts because of what they see in their self assessment and tax demands, but still don't fully understand how?
It's one of those taxes that bites harder and incrementally as both rents and interest rates rise. As a high rate tax payer, the rent rises retired to accommodate both an interest rate rise and the S24 tax element, are quite eye watering.
It was convenient to blame COVID for much of the turmoil in the sector, but it's no coincidence that the 100% tranche of S24 kicked in in the tax year 2020-21 with the full pain being felt in Jan 2022 latest. The worst of rent rises and shortages tracks the S24 pain curve.
Increased mortgage costs are barely half the story.
Sec 24, CGT and endless harassment from politicised ‘charities’ and local authorities combined with an utterly gullible and inept Gov, are destroying the PRS and hurting tenants.
Everyone knows that a shortage of any product makes that product more expensive…Petrol, sugar, toilet rolls, homes to rent - there is no mystery here.
Section 21, Licensing, Section 21, Licensing, Sections 21, Section 21, Section 21…….. the birth of Private Renting. Removal is the Death.
Council Tax increase Mr Sadiq Khan’s share increased by 8.6% to £471.40 per property for Band ‘D’ he is taking millions from us some hypocrite wants to cap our Rents who are contributing billions to Revenue and keeping him, maybe its a fools cap he wants for us.
Well Mr Khan needs to increase his take as he got over 1100 public sector employees with salaries in excess of £100k per year to cover.
Wait a moment, but Mr Khan wants to impose a rent cap on LL's giving LL's no right to expect to charge tenants more to cover their increasing costs, that would be unreasonable. Another labour HIPOCRIT at work,
I have been forced to increase all my rents and have been clearly explaining to the tenants very clearly why they are paying more, "tenants are paying for increased regulation increased government taxation and increased mortgage costs".
Assuming the RRB comes in to play or we get a labour government in power, rental property supply will fall dramatically as more LL's leave the market and rents will increase even further, its the law of supply and demand economics and the key cause of the lack of supply is government regulation, policy, taxation and their constant attacks on LL's.
Please login to comment