Homelet: UK rents up 2.1% in September

Posted on Sunday, October 22, 2017

Rents in the UK rose by an average of 2.1% during September, according to data from HomeLet.

September’s increase reflects higher rents agreed on tenancies in almost every area of the country.

Only the South-East of England recorded a negative rate of annual rental price inflation.

The highest increases in rents were seen in Northern Ireland, where rental price inflation hit 4.3% in September.

This was followed by the West Midlands at 3.9% and the East Midlands at 3.7%.

According to the data, the average rent agreed on a new tenancy signed last month was £927, compared to £908 in the same month last year.

For the second month running, rents also rose in London, after a four-month period in which annual rental price inflation had slipped into the red.

Rents in the capital were 1.9% higher last month than in September 2016, with the average tenancy agreed in London last month costing £1,593.

HomeLet chief executive Martin Totty says: “Landlords are facing a deluge of higher costs from new regulation, taxation changes on buy-to-let mortgages and the prospect of a near-term rise in interest rates.

“There’s also the added uncertainty over the fall-out from the government’s intention to ban letting agents from charging up-front fees to tenants.

He adds: “In a sector where demand for rental properties generally outstrips supply, most informed commentators suggest higher externally imposed costs on landlords will inevitably translate into higher rents to tenants.

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