Rents to rise slow in 2016

HouseRents in UK for the newly let homes were growing constantly in 2015 but slower than in 2014, according to latest index report. Rents rose in all regions of the UK with the East of England seeing the highest growth.

Rental growth over 2015 was maintained by increase in demand for rental homes and low stock of homes available in the market to rent. This imbalance between supply and demand has deepened the competition for homes in the market. The demand has been rising wherein, the average property is let within 20 days of being instructed which is quicker than 2014. Greater London had a slowdown in rental growth in 2015 compared with 2014, but rents still rose by 4.7%. As rents have risen in recent years, tenants have increasingly looked to cheaper areas in Outer London.

Johnny Morris, research director at Countrywide says: “The steadily increasing demand and lack of homes to rent have supported rental growth in 2015, even though the wage growth remained downcast. In London rising costs meant renters were more likely to move to outer London or in search of more affordable places to live. 2016 looks to be a complicated year for landlords as the government focuses its efforts on boosting homeownership.”

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