Bad news for tenants as rents are on the rise again
Rents went up last month, after dropping in both May and June, according to figures released today.
The July HomeLet Rental Index showed an increase of 1.1% in July compared to the same month a year ago, taking the average monthly rent to £925.
Rents rose in nine of the 12 regions of the UK covered by the index, with only London (-0.6%), the South East (-0.9%) and the North East (-1.7%) recording declines. July was the fourth month in a row that rents have fallen in the capital.
Rents rose fastest in Northern Ireland (up 5.7% compared to July 2016) and Scotland (3.6%),
HomeLet said that its latest data will make landlords more confident about seeking higher rents on their properties – but added that they remain very aware of tenants’ ability to pay.
Chief executive officer, Martin Totty said: “Predicting where the market heads from here is very difficult given the number of competing forces impacting the sector, either already being felt or still being contemplated.
“We know housing stock for sale is in short supply and the Bank of England has expressed concerns about the ‘credit overhang’ and lenders’ resilience should economic activity start to slow. At the very least, these factors should not be unhelpful to the rental sector in the immediate future, encouraging landlords to stick with property owning as an asset class, with potential still to provide relatively attractive returns compared with alternative investment choices.”