It’s good news for landlords. Rents are rising – something that will go some way to help property investors who have been hit by a tax crackdown.
In the latest statistics released this week, rents rose at their fastest rate for six months in April, reaching an average of £793 in England and Wales. The findings by letting agents Your Move and Reeds Rains means rents are 2.4 per cent higher than a year earlier.
It equates to a typical tenant paying an additional £19 extra a month, with rents reaching records in the East of England, the West Midlands and the East Midlands.
Adrian Gill, director of Your Move and Reeds Rains, said: “Anyone looking for a home to rent may now find the better deals of the winter months are over. Landlords are seeing renewed interest and competition between potential tenants as the spring rental market accelerates.”
He suggested that the reasons for the rent rises include tenants being in a stronger financial position.
He said those looking for a rental property are more likely to be in work, getting pay rises and feeling able to pay their other bills.
“These wider economic fundamentals are shifting on the side of healthier household finances.”
Landlords look to pass on costs
It comes as landlords seek to pass on the cost of the stamp duty surcharge of 3 per cent on buy-to-let properties as well as the forthcoming reduction in tax relief that landlords can claim.
Separate research by SpareRoom supports an increase in rents, with the average price of room rents also higher than a year ago.
However, the biggest percentage increases are happening – perhaps surprisingly – outside of London, even though the capital is where rents tend to be more in cash terms.
Big rises in the South
The regions seeing the biggest percentage rises in average room rental prices in the past year are the South East and the South West. In the South East, average monthly room rents have climbed to £485 a month, up 6.59 per cent on a year earlier.
In the South West, average monthly room rents have increased to £431, up 6.62 per cent during the same period.
By contrast, rents in the capital cost £747 a month, up only 1.63 per cent, SpareRoom said.
