Rents on property in the UK ahead of inflation

Rising rents on property in the UK is gaining momentum, with properties in London, East Midlands and Scotland showed the best rent growth, the fastest among other regions in the 1st quarter of 2016. The data submitted by the largest Agency of rental real estate HomeLet showed that the average rent in the UK has now reached £755 per month , 4.9% higher than a year ago.

The average rent for property in London has reached £1536 pounds, up 7.7 percent over the year and only the North-Western part of England saw a fall of rent.

The study shows that rents continued to rise, outpacing inflation. In the rental market of real estate of London, as usual, there is more intensive growth in rent, outpacing other parts of the country. Particularly intense growth in rental rates was in March 2016, when only one month rent in London rose 2.9 percent

Private rental sector is now under the influence of the tax changes that affected the market of real estate of great Britain. The past few months have been the most intense for insurers in history. However, the surge of transactions in the rental market, most likely, will cease from April, as the new rules of high stamp duty already in force.

Slightly increased the number of proposals in the rental market due to increased activity investors “buy to let” is likely to restrain the growth of prices for rental property in the UK in the next few months. However, in the long term, it is expected that activity of investors will decrease and, on the back of strong demand, rents are expected to rise. An additional constraint for landlords will become stricter rules for mortgage lending, which is introduced by banks on the recommendation of the Bank of England.

® Helen Entree. 12.04.2016 G.

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