Rents bounce back in July but London weak

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Rents bounce back in July but London weak

Postby Dolphin » Mon Aug 07, 2017 4:51 pm

UK rental prices returned to growth in July, the first rise recorded for three months, according to the latest HomeLet Rental Index.

The figures show that the average monthly cost of a new tenancy rose to £925 per calendar month in July, up 1.1% from £916pcm in the corresponding month last year.

It is the first time since April that HomeLet's rental index has measured a rise in rent prices, following declines of 0.3% and 0.2% in May and June respectively. But inflation in the private rental sector continues to lag the general rate of inflation, which was 2.7% in June, the latest month for which official data is available.

HomeLet’s July Rental Index reveals that rents rose in nine out of the 12 regions of the UK covered by the research.

Rents rose fastest in Northern Ireland, increasing 5.7% year-on-year, followed by Scotland where rents are up 3.6%.

In contrast, London continues to lag the UK as a whole, with rents falling by 0.6% in July compared to July 2016; the average monthly rent in the capital now stands at £1,564pcm.

The South East and the North East also recorded declines of 0.9% and 1.7% respectively.

Overall, HomeLet’s data suggests landlords now feel more confident than in the spring about seeking higher rents on their properties – but also that they remain very aware of tenants’ ability to pay.

But with fewer homes coming onto the rental market, there is every chance that rents could increase further in the coming months as demand continues to exceed housing supply.

source - ... k--homelet
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