UK rental sector increased by 2.4 pc in July

buy-let-mortgagesThe rent in UK’s private rental sector has increased by 2.4% in the 12 months to July 2016, remain unchanged when compared to June 2016, according to the Office of National Statistics. From the data of the UK House Price Index, it shows residential house price growth has normally been stronger than rental price growth for a number of years. Inflation in the rental market is likely to have been caused by demand in the market outpacing supply. According to RICS Survey, there was an increase in demand in the three months to July, while tenant demand increased in June according to the Association of Residential Letting Agents.

Richard Connolly, CEO of Rentplus, said: “The issue of increasing rents is not limited to London with the largest rental price increases in the South East, followed by the East of England, which highlights the fact that housing affordability is firmly a national issue. The struggles are numerous with hopeful home owners in the current climate also facing rising bills, low salary growth and low interest rates. The annual jump in private rental prices is bare reminder of many people living in private rented home are facing in saving a deposit to buy their first home, which is the biggest barrier to ownership.”

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