Average rents increased in most areas of England and Wales this month, with a fall in housing stock causing prices to rise, according to the latest Buy to Let Index from Your Move.
The Your Move England & Wales Buy to Let Index found nine of the ten regions surveyed saw increases in rents during the past year. The average rent across the two nations now stands at £874 following a 3.1% price increase in the last 12 months.
Every region barring the South West saw rents increase in the year to July, Your Move found, and despite rents increasing, most landlords saw their yield levels remain flat between June and July.
Rent rises could be, the report suggests, down to the introduction of a range of government policies directed at the lettings market. The effects of these policies, such as the 3% stamp duty levy and removal of mortgage relief for landlords, have restricted the supply of new lettings properties coming to market.
Richard Waind, Director, Your Move, comments:
“We are now starting to see the real impact of the government’s Stamp Duty revision, plus the additional tax changes which have hit landlords hard.”
“The outcome has been a decline in the number of rental properties on the market and this has had the effect of pushing up prices for tenants.”
“Tenants in London face a different issue as rapidly rising travel costs are increasing the overall cost of living in the suburbs, despite rents generally being cheaper than central areas.”
"The Private Rental Sector, however, could still be seen as an attractive opportunity for investors, with the North East and North West in particular seeing strong growth. Although buy to let investors are preparing for the new PRA changes coming into effect in September, it’s clear that there are still people who believe that, property remains a viable investment option.”