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Average rents growing at highest rate since 2016, index shows

Average rents growing at highest rate since 2016, index shows

The average rent in the UK increased by 0.13% last month - the highest level of monthly growth recorded since April 2016.

This is according to the latest Landbay Rental Index, powered by MIAC, which calculates the average UK rent to be £1,209 per month.

However, the national figure drops dramatically to £767 if London is excluded.

On an annual basis rents are growing at 0.97%, which is described as a 'sustained recovery' and is the highest level of yearly growth recorded since May last year.

In London, average annual rental growth has increased to 0.44% - the fastest pace recorded for two years. Prior to April 2018, annual growth in the capital had been in negative territory for more than a year.

Rental growth of 0.32% in the East Midlands last month was the highest monthly rise recorded in an English region for 40 months and the third highest figure recorded since the index began.

Meanwhile, there is positive annual movement in eight of the 30 bottom performing areas in England, including Slough, Kingston upon Thames, County Durham, Haringey and Blackpool.

"The figures point to a possible start of sustained rental rises in the UK," says John Goodall, co-founder and chief executive of Landbay. 

"Following a slowdown in rental growth the changes are likely influenced by a number of regulatory and tax changes introduced over the past two years."

"As landlords begin to feel the pinch from these changes, combined with a reduction in the supply of new homes, the inevitable consequence is an upward pressure on prices," he says. 

"The government must start to see landlords as a vital part of the UK housing market, rather than an easy target for raising the coffers. Any further changes to regulation or taxation will only end up on the tenant’s door."

07.09.18
Written by Conor Shilling Category: News

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