UK average rents in August rose 2.4% compared to the same month a year ago according to Homelet
Homelet Rental Index August 2017 released today 18th September 2017 reveals ‘UK RENTS CONTINUE TO RISE IN AUGUST.’
Average rents across the UK rose by 2.4% in August compared to the same month a year ago, the highest rate of annual inflation since November 2016; the average monthly rent now stands at £939.
Rents in London rose 2.5% in August year-on-year, following three successive months of decline; the average monthly rent in the capital now stands at £1,609.
Commenting on the research, HomeLet’s Chief Executive Officer, Martin Totty said: “Whilst we’ve often observed a seasonal uplift in average rents at this time of year, there’s evidence of a trend now emerging which points to a reversal of the declines seen over the early part of this year. This will be welcome relief to Landlords who have been battered by the perfect storm of tax changes and post-Brexit uncertainties. Whether the trend continues or represents only temporary relief from the headwinds faced by property owners, the remaining months of 2017 should provide the answer.”
Martin Totty added: “Whether the recent strengthening in rents achieved, seen generally across all regions of the country, is driven by more robust demand or by some restriction of supply is hard to judge. Either way, landlords will only be encouraged to invest in property over other assets if they’re convinced they can achieve reasonable returns. If not, then the supply of rental properties could become constrained. Many landlords still face further increases in their costs and so will need to find a new equilibrium between their legitimate required returns and affordability for tenants. It seems the elements in solving that particular equation become ever more complex.”
Read the Homelet Rental Index August 2017 in full click here.