Average monthly rent rises to £919

Countrywide Lettings has released its rental data for 2015.

Keypoints:

• Average monthly rent in the UK now £919pcm
• The East of England saw the highest growth,  rents up 6.5%, whilst Central London saw the lowest growth of just 0.5%
• 34% of tenants renewing their tenancy saw their rent increase, up from 27% during 2014.
• Increased demand means that the average rental property lets two days faster than in 2014.
• The proportion of under 25s renting in the Capital fell by 4% in the last year.

2015 saw an imbalance of supply to meet the increasing demand.

Research Director at Countrywide, Johnny Morris, comments -

“A mix of steadily increasing demand and a lack of homes to rent supported rental growth in 2015, even though wage growth remained subdued. In the capital rising costs meant renters were more likely to move to Outer London or the commuter belt in search of more affordable places to live.

2016 looks to be a complicated year for landlords as the government focuses its efforts on boosting homeownership. The additional 3% stamp duty charge, stricter regulation and changes to tax relief from 2017 onwards will all take their toll on investor sentiment and impact behaviour.

With stock at a premium, the smaller landlords who decide to sell up will add upward pressure to rents, although any rises will be tempered by affordability pressures.”