Average UK rents rose in July

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For-Rent-Sign

The recently published HomeLet rental index revealed that the rents for residential properties rose by 2.3% in July outside London, and by 4% in London. The average monthly rent outside of London is currently £779.

There has been financial uncertainty in Britain following the exit vote in the June EU referendum, but this has not affected the ability of landlords to secure higher rents, though the growth rate in July was slower than a year ago.

With many people unable to afford to buy a house and a shortage of new houses, there is a continuing demand for rental properties. HomeLet, a tenant referencing agency, predicted that the rental sector will continue to be an important component of the housing market for many years to come.

According to a report by Sky News, the UK buy to let mortgage market is worth around £200 billion a year.

Sky News also reported that The Financial Conduct Authority (FCA) is looking at the lending and underwriting standards of a small percentage of buy to let lenders in order to assess whether the FCA needs to intervene.

Several recent changes have made it difficult for buy to let investments. Some commercial mortgage lenders have tightened up their lending conditions, stamp duty has risen on buy to let purchases, and tax relief has been reduced for landlords. Despite these obstacles, Sky News said that the buy to let market sector is predicted to rise by about 20% over the next two years.

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