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Wednesday, June 08, 2016

Rental data from Homelet for May

Homelet's latest rent index using data from May 2016 shows -
  • Three months to May 2016 saw slowing rent rises in line with house price growth
  • Average rent in the UK (excluding Greater London now £771 pcm, an annual growth of 4.4%
  • Average rent in London now £1,563, an annual growth of 6.2%
Despite Brexit jitters, rents rose in 11 out of the 12 regions, with Scotland the best performing region, with annual rental growth at 10.6%.

Chief Executive Martin Totty, reflects:
“The May HomeLet Rental Index continues to show a rental market characterised by steady growth in rents as the number of tenants looking for property runs ahead of the supply in the market – that remains the picture in most regions of the country. While this growth has begun to slow, which tenants will welcome, landlords will also be encouraged by the vote of confidence in the sector evidenced by the increase in Buy to Let completions in the past few months.

Short-term factors can and do have an impact on the marketplace – as a market leader in tenant referencing, HomeLet has seen a noticeable increase in the applications for new tenancies immediately after the rush to complete buy-to-let property purchases ahead of last month’s increase in stamp duty rates.

Across the housing market, it may be that uncertainty ahead of this month’s European Union referendum vote is a factor – some people may even be choosing to rent rather than buy given the unpredictability of the outcome and its impact; as we saw at the time of the 2008 financial crisis, house prices and rents are not immune from wider economic shocks.

However, looking beyond shorter-term factors, net population growth and the rising rate of employment remain the key demand-side drivers for residential property; they look set to continue to run ahead of public and private sector initiatives to increase supply and keep pace.”

Read in full - Homelet Rental Index for May 2016

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