Prices for rental property in the East of England increased by 8.5%

About 50% of sold homes in the UK over the last two weeks of March 2016 was bought only because future landlords wanted to avoid the upcoming increase of Stamp duty from 01 April 2016. As a result, in March 2016 was signed deals of £28 billion, 26% more than average volume of deals in this period a year ago. The good news is the fact that 22% more housing came on the rental market in the 1st quarter of 2016, and as demand increased so significantly, maybe rents are a little lower.

Especially a lot of new residential properties came on the market the London property – the number of offerings on the market rental of residential property in London has increased by 40% compared with the 1st quarter of 2015, and the increase in demand slight across the UK – only 8% increase in the demand for rental property in London. The result was a marked slowdown in the growth of prices for rental property in London. The price growth in March was 2.9%, which is almost three times less than in March 2015, when rents in London was 7.4 per cent.

In the East of England rental growth significantly exceeds growth across the country and 8.5% for the year. This is due to a significant increase in demand for rental property in England in the East. The number of registered potential tenants in the East of England increased by 34% for the 1st quarter of 2016. Thus, the first notable effect of the introduction of higher rates of Stamp duty for investors was the increase in the number of objects received in the rental market of real estate of great Britain.

Most likely, this phenomenon will be temporary, as in the coming months we should expect lower investment activity. The improvement in the rental market is possible only in case of mass construction of new homes, which will provide a new stream of housing market and meet the growing demand.

® Maxim Savitsky G. 08.04.2016

 Apartment in the heart of London – Westminster

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