Recent reports have shown The Buy2let Shop that UK rent prices have risen for 10 consecutive months, and there is every indication that this will continue into 2016.
Supply and Demand
The Office of National Statistics (ONS) report shows that rents across England and Wales have risen by 5.2% in the year to August 2015. And they are expected to rise a further 3% next year according to the Royal Institution of Chartered Surveyors as demand continues to outgrow supply.
The RICS latest monthly summary explains: “While new landlord instructions did post a marginal uptick for the third month in a row, they were still significantly outstripped by fresh demand. Given the deficiency in supply, near-term rent expectations remain firm and continue to signal an increase in rents in all areas”.
Rise in Rent
The Buy2Let Shop reported how rents had risen to a record-high figure in August, and Countrywide research director Johnny 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.”
The rise in rent has encouraged people to extend tenancies rather than move to new properties, according to London-focused estate agent Foxtons.
The Buy2Let Shop
The 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.