Quantcast
Menu

Buy to Let

Westminster rents up 28 per cent in a year

Emma Lunn
Written By:
Emma Lunn
Posted:
Updated:
16/10/2015

Landlords in the City of Westminster are now receiving an average of 28.4 per cent more in rent than a year ago.

The figure comes from Direct Line for Business which has researched the areas with the best and worst performing private rental properties over the past year.

Average private rents increased in 87 per cent of England’s counties with double-digit private rent increases recorded in 11 per cent of areas in 2014 including places such as Warwick, Newcastle and Ipswich.

The average annual cost of a private rental property in Kensington and Chelsea comes in at £37,560 compared to just £8,448 in Manchester and £5,736 in Liverpool.

Direct Line said increases in some areas could be due to the demand for rental properties for new tenants, a churn of new tenants in student areas, or newly rented properties (e.g. new builds), both of which command higher than average rents. Private rental charges saw a decrease in just 13 per cent of areas.

Jane Guaschi, business manager at Direct Line for Business, said: “Where landlords are able to secure rent increases, they will often reinvest this money in the property making improvements. In the future, they may need to use the income generated by any rent increases to offset the impact of government changes that will see higher-rate relief on mortgages dramatically reduced.”

 


Share: