Britain Rental prices up year on year

A row of terraced housesPrivate rental prices paid by tenants in Britain rose by 2.3% in the 12 months to August 2016, but down 0.1% month on month. According to Office of National Statistics (ONS) data, rent have increased by 2.4% in England, by 0.1% in Wales and were unchanged in Scotland, since the beginning of 2012, English rental prices have shown annual increases ranging between 1.4% and 3.0% year on year. The index report points out that annual rental growth in the South East and East has surpassed that of London since May and June 2016 respectively.

Steve Bolton, founder of Platinum Property Partners, says: “Rents are likely to keep growing. The surge in buy to let property purchases following April’s stamp duty changes has not had any noticeable effect on the cost of renting and this trend isn’t likely to reverse any time soon. The reduction of buy to let mortgage interest tax relief will make some landlords unprofitable, forcing them to pass on costs to tenants in the form of higher rents just to stay optimistic. Even those who can still operate may be prevented from making further investments, reducing rental stock at a time of severe property shortage.”

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