Hello, and welcome back to the Experience Invest blog, in this blogpost we’ll be writing about a recent report that suggests rent for newly let properties in the UK has reached an all-time high.
The team at Experience Invest are experts on residential property investment and we weren’t surprised by the latest figures that reveal in August there was a month on month rent rise of 2.5%. This is according to the UKs largest letting agent Countrywide. These figures show that rental levels are at the highest since the index began.
The South West saw annual growth in rent for new let properties at 7%, the Midlands saw growth at 6.3%. Annual growth was recorded in all regions bar London. 45% of tenant’s renewing tenancies found their rent increased in August. In London and the South East over half of those renewing tenancies found their rent had gone up.
Rents are rising driven by a lack of available housing stock and increased demand from tenants. This borne out by the 8% drop in the number of homes advertised to let in August. With fewer options available, more and more tenants are choosing to renew their tenancies and stay in
their current rental property.
Average rental rise
Most tenants renewing will find that their rental costs have increased by 2.5% on average. The South West and the Midlands saw rents rise faster than anywhere else in the country. Competition for properties is also driving rents higher.
It’s estimated that there are now nine tenants registered for every home available to rent, up from 7.5 this time last year. It seems that more and more tenants are renewing tenancies rather than move, a small rise in rent is preferable to moving out and entering a highly competitive market.
Londoners leaving the capital
There is also evidence to suggest that growth outside of London in the South of England is being driven by Londoners leaving the capital in search more affordable housing in the commuter belt. Moves like these have been previously associated with home owners and not renters.
Experience Invest will continue to advise our clients how to best make a return on the current UK property market. We have a wide portfolio of residential property, student accommodation and care home investments which are all designed to maximise return for our clients.
Experience Invest have been trading since 2004 and we’ve worked with all types of investors from first timers to high-NET-worth individuals and corporate clients. As market leaders in UK residential investments we’ve featured in The Telegraph newspaper and on Yahoo Finance. We specialise in high demand, high yield property investments. For more information, or to discuss your own investments needs please contact Experience Invest.