RLA Reports Residential Rent Rise
According to LSL Property services, residential rental rates in the UK are now close to levels last seen in early 2008, before the financial crisis and fall in housing prices. Monthly rents increased by 1% last month, crowning five straight months of rental rises. As such, the average rent in the private buy-to-let sector increased by 3.2% over the past 12 months, leading to a monthly increase in income per tenant of £23 each month, bringing rents to £673. Buy-to-let specialists add that the last time rents were this high was in November 2008, just before the full impact of the economic crisis became felt by landlords.
London-area landlords experienced the highest rental increases and almost doubled the national average. Rents in the capital rose by 1.9%, bringing average monthly rates to £942. But the positive news was not only relegated to London, as landlords in areas hardest hit by the economic crisis also experienced noticeable increases in rent. Rates rose by 1.4 in England’s North West, while rates increased by 1.3% in the North East. The West Midlands, however, did not experience the same positive trend seen elsewhere in the UK. Buy-to-let landlords actually saw their rates drop by 1.7% in June.
David Brown, LSL Property Services’ director, noted that the relatively thin supply of rental properties and high demand is the main factor behind the continued rental increases over the past five months. London rentals continue to rise faster than in other parts of the country and Brown believes that this will likely continue over the foreseeable future, as first-time buyers find it difficult to purchase their home.
