Homelet's rental data from August

Homelet's rental data for August has been posted; it shows

• Annual rental growth is now at 2.4%
• UK average monthly rents are £939.
• Rents in London rose, following three successive months of decline.
• The average monthly rent in London now at £1,609
• 11 out of the 12 regions of the UK saw rents rises in August.

HomeLet’s Martin Totty comments:

“Whilst we’ve often observed a seasonal uplift in average rents at this time of year, there’s evidence of a trend now emerging which points to a reversal of the declines seen over the early part of this year. This will be welcome relief to Landlords who have been battered by the perfect storm of tax changes and post-Brexit uncertainties. Whether the trend continues or represents only temporary relief from the headwinds faced by property owners, the remaining months of 2017 should provide the answer.

Whether the recent strengthening in rents achieved, seen generally across all regions of the country, is driven by more robust demand or by some restriction of supply is hard to judge. Either way, landlords will only be encouraged to invest in property over other assets if they’re convinced they can achieve reasonable returns. If not, then the supply of rental properties could become constrained. Many landlords still face further increases in their costs and so will need to find a new equilibrium between their legitimate required returns and affordability for tenants. It seems the elements in solving that particular equation become ever more complex.”

HomeLet’s regional data is available in more detail via an online interactive infographic.

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