The latest Your Move and E&W Rental Tracker show a positive outlook for rents across the UK. As rents in England and Wales have increased by 2.5% in the past year. The average rent now stands at £829 per month, with only two locations in the UK seeing a fall in rents - London and the North East. This is in line with predictions that after decades of house price rises and rental increases there is expected to be a reversal of this trend, with rental prices increasing at a much slower rate than we have previously experienced.
Why are rents continuing to increase in other parts of the UK?
First-time buyers are still finding it hard to get onto the property ladder, as competition remains fierce at that end of the market. This fact alone will mean that there will be a continued demand for rental properties throughout the UK and in return, we would expect to see a continued increase in rents.
The NLA, National of Landlords Association have predicted that they expect private landlords to sell at least one of their rental investments this year, reducing the amount of available rental properties. They say that changes to the number of tax landlords can claim back will also lead to higher rents and a decrease in available rental properties. They say that combination of factors might lead to average rents being pushed up by around 3% every year until 2022.
If you are a landlord or are thinking about becoming a private landlord then no doubt there will be a continued demand for rental property. However because of the changes in letting industry especially those changes to legislation, tax and safety it’s best to deal with a registered ARLA lettings agency to help you navigate through all of those changes. At Intercounty we can even help you to work out what your expected yield could be on a property as well as helping you buy a suitable rental property for your own specific requirements.
Your Move E&W Rental Tracker