Average UK rents continued to rise during July, hitting £781 per month, and building on the consistent increases seen during the first half of the year, according to the Rental Index. The index revealed that rents agreed on new tenancies across the UK (excluding London) over the three months to the end of July were up by 2.34%, compared to the same period in 2015. In London and the surrounding areas rents were 4% higher. Brexit bounce-back: The data suggests that landlords have been able to continue securing higher rents on new tenancies despite the economic uncertainties created by the UK’s vote to leave the European Union in June of this year. It mirrors data from the housing market, with mortgage lenders also reporting modest growth in house prices in the month following the Brexit vote, although it is still early days. Looking ahead, Britain’s growing population, the relative unaffordability of house prices, and the lack of new homes being built combined with the reduction in social housing suggest that the private rental sector will continue to be an ever-important source of homes in the years and decades to come. Rents will normally be determined by supply and demand in the private rental sector; what we know here is that population growth will continue to increase demand, and that the housing stock isn’t growing quickly enough to meet that demand. Help required? If you are looking to secure a new or re-mortgage in the near future please do contact us and we will be happy to assist.
