Shortage of properties push rents up
Tenants are paying higher rents than ever, with some areas of the country seeing a rise of 4% on monthly rents.
Average rents now exceed £1,000 a month in some parts of the country, with many landlords benefiting from tenancy renewals.
The number of tenants experiencing rent hikes in August increased to an all-time high of 40%. The figure was up from 31% July, according to the ARLA Propertymark PRS report.
The rent rise is being attributed to new taxes and increased government legislation that have forced many landlords to sell their buy-to-let properties, leading to a shortfall in supply.
Potential investors have also been put off entering the market due to factors such as the 3% stamp duty surcharge, the phasing out of mortgage interest relief, the tightening of mortgage lending rules and new energy efficiency measures.
According to research by estate agents Hamptons International, the average price paid by tenants in Britain for a new let is £957 a month.
Unsurprisingly rents are highest in London; despite a drop of 0.8% year-on-year, an average monthly rent in Greater London is £1,702; in inner London this rises to £2,609.
Average rents across the north are £648 a month, while tenants in Scotland can expect to pay £658 a month. Landlords in Wales and the Midlands have seen a rise in monthly rents – 4% and 3.3% respectively – with rent on properties averaging of £683 and £689.
A monthly rental income in the south west is £807 a month, while in the south east this rises to £1,052.
The research also revealed that many tenants were choosing to staying put, which was good news for landlords as rents on properties where tenants renewed their rental agreement increased by 3.2 per cent year-on-year in London and 2.8 per cent across the rest of Britain.
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