Annual rental income rose in July, according to HomeLet’s Rental Index
New figures indicate that annual UK rental growth enjoyed a resurgence in July, rising to 1.1 percent and underlining the long-term value to landlords of letting out properties.
HomeLet’s Rental Index announced the return to positive figures, after the two previous months had recorded small declines of 0.3 percent and 0.2 percent.
Northern Ireland saw the biggest gain of 5.7 percent, while Scotland returned a healthy 3.6 percent increase. Within the UK, the East Midlands was the best performing region with 3.2 percent growth in rent growth, while London delivered a disappointing -0.6 percent.
Martin Totty, HomeLet’s chief executive, said: “It’s often been the case in recent times that rents have strengthened over the summer period.
It’s a time when renters contemplate moving, demand increases, tenancy terms are set, and when the anniversary of the tenancy often occurs.
“This year, that ‘seasonal’ factor brings some relief for landlords, who’ve endured a gradual erosion in rent prices over many months.
“At the same stage last year, the South East was the main driver of UK average rents. This time around it’s regions throughout the country leading the strengthening in rents.
Andrew Turner, chief executive at Commercial Trust, stated:
It was inevitable that rents would rise, in light of the financial pressures being placed upon landlords, through the reduction of mortgage interest tax relief and stamp duty.
“Buy-to-Let is a business, and any business must make a profit to be sustainable.
“It has been acknowledged for some time by the industry that by imposing these measures upon the Private Rental Sector the government simply increased the tenant’s rent bill. There may be fluctuations in this, but with tax relief reducing yearly to 2020 there may yet be further implications for tenant rental costs.
This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.