UK private rental prices rise 2.1% year on year in September
The cost of renting a home in the UK has continued to climb over the last year, with demand not letting up, and landlords raising prices to cope with additional costs they face.
Over the last two years, landlords have been dealing with additional overheads in the form of tax increases, and many have passed this down to their tenants. When this is coupled with the rising number of people looking to rent, prices are rising.
According to the latest report released by HomeLet in the form of its September market index, the price of rent across the UK has now hit an average of some £927 per calendar month.
It means that in the space of just 12 months, the average price paid by tenants has climbed by some 2.1 per cent. It's a similar story in London as well, where the monthly average of £1,593 faced by tenants represents a rise of 1.9 per cent compared to September 2016.
In London, September's data marks the continuation of what has been a turnaround for the market. In the earlier part of the year, rents actually fell on an annual basis for four consecutive months. However, September marks the second month in a row where prices have climbed in the capital.
HomeLet’s chief executive officer Martin Totty said this could be the start of a longer trend of rises in price across the market, as more landlords start to pass the additional costs they face down the chain to their tenants "to preserve the returns from capital they have invested in residential property assets".
"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 fallout from the government’s intention to ban letting agents from charging upfront fees to tenants," he added.
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09-October-17General Lettings News