By Sali Brown
Managing Director
Chelton Brown
RENTS seem to be rising again after some months of small dips, with the average new tenancy signed during July costing £925 compared to £915 in the same month of 2016.
Rental rates are currently running at an inflation rate of 1.6 per cent, making it an ideal time to buy investment properties.
The figures, produced by HomeLet, the tenant referencing and specialist lettings insurance company, suggest that July’s 1.1 per cent annual increase compares to declines of 0.3 per cent and 0.2 per cent in May and June respectively, the first time rents had fallen in the UK since 2009.
HomeLet added that inflation in the private rental sector continues to lag behind the general rate of inflation, which was 2.7 per cent in June, the latest official data available.
Although London saw rents fall for the fourth successive month, outside of London, rental price inflation is significantly stronger with nine out of 11 regions beyond the capital seeing higher rents last month.
As a result, rental price inflation across the UK but excluding London is now running at a much faster rate of 1.6 per cent.
This data suggests landlords now feel more confident than in the spring about seeking higher rents on their properties – but also that they remain very aware of tenants’ ability to pay.
The July figures may also reflect a decrease in the number of homes coming onto the rental market, with research from organisations such as the Association of Residential Letting Agents suggesting fewer landlords have acquired new rental properties in recent months.
However, the summer period is a time when renters contemplate moving, demand increases, tenancy terms are set, and when the anniversary of the tenancy often occurs, so this year, that ‘seasonal’ factor has brought some movement to the market, and therefore some relief for landlords.
For more information, contact Chelton Brown on 01604 603433 or 01327 879431 or visit the website www.cheltonbrown.co.uk