In the first quarter of 2016 Greater London, the East Midlands and Scotland saw the fastest rises – the average rent in the UK, excluding Greater London, is now £755 per month, some 4.9% higher than a year ago, according to HomeLet. London average prices have reached an all time high at £1,536, up 7.7% year on year.
The research shows strong demand for rental properties and continuing rent rises that are significantly above inflation.
These figures are based on information collected before the recent changes to stamp duty, so it remains to be seen what will happen to the property market over the next few months as the effects of the changes in legislation begin to influence landlords’ decisions.
Similarly new rules have been proposed by regulators on buy to let lending and there is a staged introduction of reducing tax relief on mortgage interest payments to the basic rate that will come into effect over the next few years.
Buy-To-Let investors should take heart – although the parameters of the property investment market is changing and is certainly going to be a bit less profitable in terms of annual income, it would appear that the continuing strength of demand that continuously outstrips supply means that the capital growth of your rental properties will perform well.
If you would like some more advice about buying or selling rental properties, please contact our expert Lettings team today on 01788 551111 (option 2) or by emailing email@example.com