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Shrinking lettings supply pushes up rents, says Your Move
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Original Source: Letting Agent Today.
Original Author: Graham Norwood.
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Your Move says a shrinking supply of properties, in part created by government measures against the lettings sector, has led to rent rises.
The agency cites the stamp duty surcharge on additional homes including buy to lets, and the phased removal of mortgage interest tax relief for landlords as likely reasons for restricted supply – although it admits this may have been tempered by a drop in tenant demand post-Brexit.
Every region barring the South West saw rents increase in the year to July; the biggest rise came in Wales where prices have grown by 4.3 per cent in the last 12 months to hit an average of £595.
Three other areas saw growth of more than 3.0 per cent in the last year. In the South East prices increased by 3.6 per cent to reach an average of £884 while in the East of England the typical rent is now £873 per month after 3.3 per cent growth. Finally, the North West saw price increases of 3.1 per cent in the past 12 months to reach an average rent of £630.
By contrast, rents in the South West were down 2.2 per cent. The average property in this region now lets for £667 per calendar month.
Your Move claims the increases in most areas can be associated with a fall in the housing stock available to renters.
In London, prices have grown 1.2 per cent in the last 12 months to reach an average of £1,283. However, the agency says this headline figure masks big differences depending on the location of the property.
The average property in Zone 2 cost tenants £1,831 a month compared to a typical price of £1,161 in Zone 4.
