Shortage of homes continuing to drive up rents

Rents look set to increase further in the coming months, as the supply-demand imbalance continues to grow.

With landlords facing increasing pressure as a result of the introduction of the 3% stamp duty surcharge last year and the phasing out of tax relief, some buy-to-let investors are making plans to exit the private rented sector, while others are actively increasing rents, as reflected by the latest HomeLet data.

UK rental prices returned to growth in July, the first rise recorded for three months, according to the latest HomeLet Rental Index.

The figures show that the average monthly cost of a new tenancy rose to £925 per calendar month in July, up 1.1% from £916pcm in the corresponding month last year.

“The government’s recent attempts via increased taxes to rein back the private rental market and persuade fewer landlords to buy properties to rent out appears to be working,” said Sheraz Dar, CEO of CreditLadder.

“A growing number of tenants are now chasing fewer properties to let, helping push up rents as the Homelet figures show,” he added.

Rental figures from the July 2017 HomeLet Rental Index

Region

Average rent in July 2017

Average rent in June 2017

Average rent in July 2016

Monthly variation

Annual variation

Northern Ireland

£625

£610

£589

2.4%

5.7%

Scotland

£630

£636

£607

-1.0%

3.6%

East Midlands

£620

£614

£600

1.0%

3.2%

West Midlands

£680

£662

£663

2.7%

2.4%

South West

£823

£800

£803

2.9%

2.4%

North West

£698

£688

£682

1.4%

2.3%

East of England

£919

£906

£904

1.5%

1.6%

Wales

£613

£608

£605

0.8%

1.3%

Yorkshire & Humberside

£625

£615

£618

1.6%

1.1%

Greater London

£1,564

£1,524

£1,573

2.6%

-0.6%

South East

£1,025

£1,015

£1,033

0.9%

-0.9%

North East

£526

£525

£535

0.3%

-1.7%

UK

£925

£908

£915

1.9%

1.1%

UK excluding Greater London

£769

£757

£757

1.5%

1.6%

Notes:

Based on new tenancies in July 2017

Based on new tenancies in June 2017

Based on new tenancies in July 2016

Comparison of average rent in July 2017 and June 2017

Comparison of average rent in July 2017 and July 2016

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