You are here: Home - Buy to Let - News -

Rents rise in July

0
Written by:
09/08/2016
The outlook for the rental market remains strong as demand exceeds supply
Rents rise in July

Average UK rents continued to rise during July, hitting £779 a month, and building on the consistent increases seen during the first half of the year, according to the HomeLet Rental Index.

The index revealed that rents agreed on new tenancies across the UK (excluding London) over the three months to the end of July were up by 2.3%, compared to the same period in 2015. In the capital, meanwhile, rents were 4% higher.

Brexit bounceback

The data suggests that landlords have been able to continue securing higher rents on new tenancies despite the economic uncertainties created by the UK’s vote to leave the European Union in June.

It mirrors data from the housing market, with mortgage lenders also reporting modest growth in house prices in the month following the Brexit vote, although it is still early days.

Looking ahead, Homelet said that the fundamental forces in the private rental sector remain unchanged: Britain’s growing population, the relative unaffordability of house prices, and the lack of new homes being built combined with the reduction in social housing suggest that the private rental sector will continue to be an ever-important source of homes in the years and decades to come.

Martin Totty, CEO Barbon Insurance Group’s chief executive officer, said: “Ultimately, rents will be determined by supply and demand in the private rental sector; what we know here is that population growth will continue to increase demand, and that the housing stock isn’t growing quickly enough to meet that demand.

“However, with rents ultimately limited to a tenant’s ability to pay, rents are likely to continue to climb, albeit at the slowing pace noted most recently.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Comments are closed.

Your Mortgage Guides

Your Mortgage Award Winners 2018-2019

Download our guide to the best mortgage lenders in the UK

Read More >

Read previous post:
New deals from Mansfield for small deposit borrowers

The building society has a new range of fixed and discounted rate mortgages available up to 95% of the property's...

Close