21st
Jun 2017
New research claims that overall rents throughout the UK have bottomed out as more and more landlords are desisting from increasing rents.
According to a peer-to-peer's lending platform for residential buy-to-let landlords latest Rental Index, there has only been a marginal increase in rents of just 0.2% in May and represents a 0.14% five-year average growth rate.
The capital is the only area in the UK where rents fell by 0.12% month on month. Over the last twelve months London has experienced a fall in rents of nearly 1%, whereas the rest of the UK, had on average, a rise of 1.62%.
The company's Rental Index surveyed twelve regions of which seven had a slower growth than April, this was possibly down to the election and the Brexit situation causing rental demands to waver.
John Goodall, CEO and founder of peer2peer lending platform, said: “The election is one of many external factors influencing activity in the buy to let market at the moment. Yes, uncertainty about the future of the UK will cause some people to delay a decision to move, but affordability pressures are also starting to pinch the pockets of renters across the country.
“Wage growth is now lagging behind inflation for the first time since mid-2014 and with less money to spend on such a major monthly outlay, renters will be factoring this into their tenancy decisions.
“On the supply side, a wave of new rental properties caused by last spring’s hike to stamp duty, together with falling house prices, will no doubt both be playing a small part in the ongoing softening of rental growth. Nevertheless, barring a major surprise from either the election or the Brexit negotiations, long term population and construction trends suggest that rents will soon be growing faster than inflation again.”
UK Rental Index
UK Rental Index by Number of Bedrooms
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