Research shows rent increase in 2018 of 2.5 per cent. The most recent HomeLet Rental Index has shown that there was a steady growth in rents within the UK last year, with an average growth rate of 2.5 per cent. The average rental price in the UK is now at £932 each calendar month. Despite the tax squeeze on buy-to-let landlords and uncertainty around Brexit, rental values are still expected to remain steady in 2019, due to an expected reduction in the supply of privately rented housing caused by disposals.
London has demonstrated a healthy growth of 3.7 per cent in 2018, with rental prices across the city now at an average of £1,588 each calendar month. In prime locations, these figures reached 9.7 per cent, with average rental prices of £2,356 each calendar month. Outside of the city, an average rent of £775 was recorded, reflecting an increase of 2 per cent during the same period. In London, the average rental price of £1,588 is 70.4 per cent higher than the average rental price across the rest of the UK, which is at £932. When the capital is excluded from the data, the average rental price in the UK of £775 means that rents within London are 104.9 per cent higher than rents across the rest of Britain.
The HomeLet Rental Index, published in January 2019, revealed that rents have increased in 11 out of the 12 regions across the UK which were covered by the study. HomeLet’s chief executive, Martin Totty, commented on the new index data, and stated that the study proved positive news for both landlords and tenants. In 2018, the UK experienced steady rental price growth, alongside increases which have remained generally in line with rates of consumer inflation. There remains sustained demand for rental properties, with the private rented sector still providing the market with both long term and flexible housing options.
However, data collected from the Nationwide House Price Index has shown that there has been a slowdown in house price rates of growth, which is being driven primarily by the dejected London market, which has seen house prices fall by 0.8 per cent in the final four months of last year. In contrast, average rental prices in London have grown by more than 4 per cent in the final stages of the year. It is predicted that this trend will continue within London, if demand for rental property continues to outweigh supply. For 2019, it is predicted that private landlords will continue playing a crucial role in the broader UK housing market, with a positive outlook for property investors.
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