Rents increase at lowest rate since 2014 according to Rightmove
The latest Rental Price Tracker report from Rightmove for Q4 2017 headlines ‘Pace of annual rent rises now lowest since 2014’.
New data from Rightmove shows the average asking rent across the UK, excluding London, increased by 0.7% in 2017, the lowest rate of growth since 2014.
Rental growth in 2017 was significantly lower than the two previous years, which saw increases of 3.7% (2015) and 3.5%(2016).
Rightmove Director and housing market analyst Miles Shipside comments:
“Nationally rents have been holding pretty steady over 2017, retaining the 3% plus rises seen in both 2015 and 2016, and adding a more modest 0.7% in the last twelve months. Increasingly stretched tenant affordability, and the surge of buy-to-let property supply beating the stamp duty tax hike deadline, have acted together to mute landlord pricing power. In contrast, after a few years of falling rents in London they’re back on the up again, due to a combination of tightening stock available to rent and strong demand.
“While the 2017/2018 tax year will see the start of the government’s changes to tax relief on buy-to-let mortgages, we don’t think this first phase will have that much of an effect on many landlords’ portfolio decisions until another year down the line. From speaking to some landlords they’re unlikely to make any decisions to sell up until they see in real-time how much of an impact it has on their finances, with many choosing to take a wait and see view rather than looking at short-term gains or losses. However, agents report that there are some highly-geared landlords with large loans looking to reduce their exposure to loss of tax relief by cashing in and selling some properties.”
Read the latest Rental Price Tracker report from Rightmove in full click here.