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Professionals and families more likely to see rent rises
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Another report has suggested that rents are likely to increase in the third quarter of the year, as less rental properties are coming onto the market.
This is due to more landlords beginning to sell more properties as a direct result of the raft of legislation changes aimed at deterring investment, according to Belvoir.
Spiralling?
Despite the forecasted rent rises, the property franchise insists that rents across Britain are not spiralling out of control.
Belvoir’s Q2 rental index shows that private rents have risen by an average of 2.75% during the last year. This was an increase of £730pcm in Q2 2016, to £751pcm in the second quarter of this year.
When comparing the Q2 2017 average with the 2016 yearly average of £783pcm, this suggests rental price growth of just below 2% – more or less consistent with ONS statistics and other rental indexes.
Dorian Gonsalves, CEO of Belvoir, said: ‘Sensationalist media reports that rents are spiralling out of control across the country are at odds with what our offices are reporting, and that other letting agents across the country are currently experiencing. However, feedback from our franchisees confirmed that fewer properties were seeing static rents than in the previous quarter, and more offices experienced rent rises of £25 and £50 per month.’[1]
Professionals and families more likely to see rent rises
Rental Rises
The data indicates that rents range from £597pcm in the North West, £665pcm in Yorkshire, £1,048pcm in the South East and £1,446pcm in London.
In fact, the average rent recorded in Q2 2017 in London was £1,454 excluding Central London. This represented an increase of 4.5% year-on-year.
40% of Belvoir offices in the South East saw slight rises in rent during Q2 of 2017, with 40% reporting little falls and 20% remaining static. This pattern was also seen in East Anglia, Yorkshire and the East Midlands.
Looking to the third quarter, Mr Gonsalves observed: ‘Families and professionals are most likely to experience rent rises. Demand from tenants on benefits saw the biggest increase versus Q1 and therefore rents are expected to rise for this sector. Two to three bed properties remain in demand and are in short supply.
Although we are not currently seeing a huge exit of landlords from the market it is apparent that landlords are beginning to sell their properties. Most agents expect investor enquiries to remain the same, or to fall, especially for room rents.’[1]
[1] https://www.landlordtoday.co.uk/breaking-news/2017/8/families-and-professionals-most-likely-to-experience-rent-rises
