Rents continue to rise across UK from June

rental-properties-Rents across the UK continued to rise during June, but the first half of 2016 has been slowing in the speed of rental increases, according to a latest rental index. Rent on new tenancies across the UK, excluding London, increased by 3.5% in the second quarter to over £750 per month. The more rental increases are seen in June are a carry-over of a trend that has developed throughout the first half of the year, with rents rising across much of the UK each month, but at a slower pace than was in 2015. Landlords were hit by higher stamp duty charges on purchases of new property in April, which led to a rush to complete transactions before then and a point in the supply of rental property thereafter. Meanwhile, tenant demand for property has remained strong, particularly given rising house prices and constricted mortgage availability, and projected growth in the UK’s population suggests this will continue.
Martin Totty, chief executive of Barbon Insurance Group, says: “Landlords are continuing to secure rental growth while there are some early signs of affordability criteria beginning to bear on the rates of rental price growth. The restraint on the supply of new housing, the gap between demand and supply in the private rental sector will remain marked. With long term drivers such as net population growth still in place, it is likely that rents will continue to rise, though affordability will continue to be decisive. The recent slowdown in rental growth rates may suggest affordability’s maximum is being approached.”

Leave a reply

Your email address will not be published.

Back to home page