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Buy to Let

South West home to fastest rent rises

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
10/08/2015

Rental prices are growing faster in the South West of England than anywhere else in the UK.

Data released by rental specialists HomeLet found that properties in cities like Bristol and Bath (pictured) had helped the region grow faster than anywhere else.

The typical property in the South West now costs £914 per month, a rise of 11.4% on last year.

Scotland saw the next biggest growth with rental prices increasing by 11.2% in the last 12 months to reach £667 a month.

The South East also saw growth of more than 10%, with prices growing 10.3% to reach £968 per month.

London remained home to the highest rents in the country, recording an average of £1,538. This is 9.3% higher than a year ago, the firm said.

The North West was the only area of the country that saw rents fall in the last 12 months. The average rent charged in the region is now £663 following a 1.4% fall year-on-year.

Across the whole country rents are increasing faster than both inflation and house price growth.

Martin Totty, chief executive officer of Barbon Insurance Group, said: “Over the past few years, price trends in the rental market and house purchase market have been very similar.

“However, across the first half of this year, house price growth has slowed whilst rental values have continued to increase, perhaps reflecting a change in the relative attractiveness of renting versus buying over this recent period.

“With early signs of the cost of mortgage finance starting to edge up, it will be interesting to see if this recent trend continues or if the change in buy to let mortgage interest tax relief announced in the summer Budget has any indirect impact on rental values with some suggesting it could further stimulate rental values over time if supply of rental properties is constrained as a consequence.”


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