The typical rent in Britain has edged closer towards £1,000 a month, according to new research.
The findings by HomeLet show that average rents reached £953 a month in December last year – an impressive increase of 3.5 per cent on the same period a year earlier.
However, the £1,000 a month threshold has already been smashed for those looking to rent in the capital. It typically costs £1,630 a month to rent a property in London, up 2.1 per cent year-on-year.
The average rent in London (£1,630) is 71 per cent higher than the average rent in Britain as a whole (£953).
But when you exclude London from the figures, the average rent for Britain was £793 in December last year – a rise of 3.9 per cent from December 2018.
That figure places rents in the capital as 105 per cent higher than the rest of Britain.
The HomeLet data found that rents rose in the past year in all 12 regions analysed.
The average rise of 3.5 per cent is significantly higher than the rate of inflation, with the Consumer Price Index currently standing at 1.8 per cent.
This is good news for landlords who’ve stuck with their investments despite some harsh tax and regulatory changes in recent years, including a three per cent stamp duty surcharge.
The data also found that rents in Wales are growing faster than any other region in Britain.
And rents in eight other regions are also rising faster than the average in Britain, including the North East, the North West, the East Midlands, Scotland, Yorkshire and Humberside, the South East, the East of England, and Northern Ireland.
Martin Totty, chief executive of HomeLet, said: “It’s been an interesting year for the property market as a whole. Despite Brexit implications remaining unknown for a majority of 2019, the private rental sector has continued to conform to the basic economic principle of supply.
“Rental price growth has been on an upward trajectory since the middle of 2017, driven primarily by an acceleration in the regions outside of London.”
He added: “Demand for rental properties is not showing signs of slowing down, with the Office for National Statistics reporting the number of households in the sector rising from 2.8 million in 2007 to 4.5 million in 2017, and that the age of renters has slowly increased over the same time period.
“The sluggish dynamics of the sales sector may have limited opportunities for those people looking to make the move from renting to home ownership, driving demand further for rental stock.
“While a level of economic uncertainty remains, it seems unlikely that the trend of recent years is set to change any time soon. So long as the balance between supply and demand remains, it would be reasonable to predict a further period of solid rental price growth throughout 2020.”
Does the HomeLet data reflect what you’re seeing with your rental income? Let us know in the comments below.
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