HomeLet Rental Index March 2016
HomeLet posted today the latest figures and research from the HomeLet Rental Index
Main points:
Greater London, the East Midlands and Scotland show fastest rent rises over three months to March; North West is the only area to decline
Average rent in the UK (excluding Greater London) is now £755 per month – 4.9% higher than a year ago; average rent in London now £1,536, up 7.7%
Private rental sector anticipating impact as tax changes and new regulation come into force, HomeLet records busiest ever month for landlord insurance
Commenting on the report, Martin Totty, Barbon Insurance Group’s Chief Executive Officer, said: “We’ve continued to see increases in rents on new tenancies in almost every part of the UK during the first quarter, as the private rental market has responded to the pressures of an imbalance between demand and supply.
“However, external factors may now come into play: the stamp duty increase has already had an impact and that surge in the acquisition of property by landlords could now cause a short-term increase in the supply of rental property in some areas of the country. In the longer term, changes to rules around buy-to-let mortgage interest being offset against tax bills, coupled with the Bank of England’s instruction to lenders to apply more exacting criteria on buy-to-let lending, may have a limiting effect on supply. The data from the HomeLet Rental Index will be eagerly anticipated over the next few months as an indicator of the impact these changes have may have on the market.
“However, despite these factors, we expect the private rental sector to continue to play a crucial role in a housing market where population growth will continue for the foreseeable future according to official projections.”
See the full report on the HomeLet website click here
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