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Thursday, October 06, 2016

Rental growth slowing says Landbay

Another day, another rental index. This one from Landbay, shows slowing rental growth.

Their data has rents up 0.09% in September, which to my estimate, is about five bob (or 50p in today's money).

Landbay has the UK annual rate of rental growth at 1.65% to £1,187 per month.

There London figure is lower, up just 0.67% over the year, with the average monthly rent in the capital now at £1,891.
  • England saw a monthly rise of 0.09%, with annual growth at 1.66%, to £1,219 per month. 
  • Scotland saw a monthly rise of 0.21%, with annual growth at 1.79%, to £720 per month. 
  • Wales saw a monthly rise of 0.08%, with annual growth at 1.34%, to £632 per month.

John Goodall from Landbay comments -

‘Housing has been high on the political agenda this week, and it seems that policy makers are resolute in their ambitions to make home ownership more affordable for people across the UK. There’s no denying most people aspire to own their own home, but it’s critical that efforts to bolster the countries housing stock don’t overlook the importance of the buy to let market for a supportive and sustainable housing market,’

‘The fact remains that those building up toward a house purchase rely on a well-served buy to let market to ensure that excessive rental growth doesn’t dampen their purchasing power. The challenge is exacerbated by record low interest rates, which may make mortgage borrowing cheaper for those able to buy a home, but also mean that house prices, and indeed rents, are growing more quickly than the money they have saved in bank and building society accounts,’

‘The overall picture is one of moderating rents, which is good news for those in shared accommodation, but an under supply of one bed properties will continue to restrict the ability for aspiring home owners to save up for a house of their own,’

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