The latest index has suggested to the Buy2Let Shop that newly let property rent prices have risen to record heights, following a 2.5% rise in August 2015.
According to the latest index by Countrywide, the average rent price in the UK is now £946 per calendar month, 3.8% higher than 12 months ago. That’s the highest new let rent pries since records began, with growths recorded in all regions apart from Central London.
The South West and Midlands have seen the highest rises, with more than 6% inflation. 45% of overall UK tenants saw increases in rent during August, with more than half of tenants in London and the South West seeing increases.
The research director at Countrywide, Johnny Morris, said: “Rental price growth in the South of England, outside of London is being fuelled by an increase in the number of Londoners leaving the capital, looking for more affordable markets in the commuter belt.
“With the number of over 30s and families renting steadily increasing, more renters are now making life stage moves out of the capital, which have in the past, mostly been associated with home owners.”
Supply and demand
The number of homes advertised for rent across the UK is down 8% from this time last year, whilst the amount of registered applicants is up by 4%. With so many new tenants registering, this is also having an effect on existing tenants who are forced to go pay an increased rate.
Morris said: “Falling numbers of homes available to rent and increasing demand from tenants have been the defining features of rental market so far in 2015. Competition for rented homes has intensified and led to accelerating rent growth.”
Buy2Let Shop are the UKs leading estate agent for investment grade property and along with our sister company “The Buy2Live Shop” we offer professional and friendly services to vendors looking to sell their home to investors looking to build their portfolio.
Through our national advertising campaigns and huge network of contacts, we connect buyers with sellers and unlike most high street estate agents, we not only have a large number of listed buyers looking for find their dream home, we also have a database of retained investors, with proof of funds and finance in place.