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Rents shoot up in South of England

The cost of renting has risen in the South of England outside London, research from Homlet shows.

Rents have risen by 10% to £942 in the South West, by 7.7% in the East of England to £983, and by 6.1% in the South East to £1,085.

The cost of renting has fallen by 4.5% in London to £1,556, signalling people moving out of the city.

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Andy Halstead, chief executive of HomeLet, said: “At a national level the latest data shows a continuation of the trends we’ve seen emerging since the national lockdown ended, with rents for new tenancies increasing across the UK, with the exception of London.”

“In the regions surrounding London, the annualised variations in rental values for new tenancies looks significant, especially in the South West (10%), East of England (7.7%) and South East (6.1%). In reality this is a theme that we’ve seen grow gradually month on month, since July 2020.

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“In the South West average rents are now £83 per month higher than the same time last year. The upward pressure on the regions around the capital, particularly commuter towns, is coming from a broad range of tenants looking for more space, both inside and outside the property.

“The trends we’ve seen in the past 12 months highlight the responsiveness of the private rented sector, and the crucial role it plays in supporting the changing needs of a significant proportion of households in the UK.”

BY RYAN BEMBRIDGE

Source: Property Wire

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Rents in northern England record first annual fall since 2014, says index

Average rents in northern England have recorded the first annual fall in nearly four years, according to an index.

In April, the cost of a new let across the North West, the North East and Yorkshire and the Humber fell by 0.3% compared with a year earlier, the Hamptons International Monthly Lettings Index said.

It was the first year-on-year fall since June 2014.

The average monthly rent across the northern regions in April was £622.

By contrast, average new lets in southern England – made up of London, the South East, the South West and the East – were up by 2.2% year-on-year, reaching £1,372 per month on average.

Across Britain, average rents rose 1.9% year-on-year in April to reach £953 per month.

Hamptons said that, following the introduction of a stamp duty hike for second home owners in 2016, including buy-to-let investors, the supply of homes available for rent in the South has fallen, while in the North it has remained more resilient.

It said last month there were 19% more available homes to rent in the North than in April 2016, compared with 16% fewer homes available to rent in the South.

In Scotland, average new let prices were down by 5.3% year-on-year in April, at £584 per month.

In Wales, rents increased by 3.4% year-on-year to reach £656 per month on average.

Aneisha Beveridge, research analyst at Hamptons International, said: “Low stock levels in the South continue to drive rental growth as tenants compete for fewer available homes.

“Since April 2016, the month the stamp duty surcharge was introduced for second homeowners, landlords across Great Britain have sold 88,000 more homes than they bought.

“But landlords are finding new ways to maximise their returns by purchasing properties elsewhere, particularly further North in search of lower stamp duty bills and higher yields.”

Source: Yahoo Finance UK