Average UK rent growth in the first six months of 2018 grew slightly by 0.4%.According to figures released in the Landbay Index, rent rises vary depending on the location. The East Midlands had 0.95% growth, and the East of England 0.7%. The largest average rent rise was in Nottingham at 1.43%. London rents were largely unchanged, with an average 0.1% increases.
Rents in Wales have increased by 0.9%, by 0.72% in Northern Ireland and 0.46% in Scotland.
The average monthly rent is £764, but London is two and a half times as high at £1,884. In Wales, average rents are £651, and in Scotland £734. In Northern Ireland, rents are cheaper at an average of £573.
John Goodall of Landbay commented:
“Landlords have had to face a myriad of challenges over the past two years, with regulatory and tax changes reshaping the sector. Despite this, there has been little sign of them passing on additional costs to tenants.”
There could be an increase in the Bank of England interest rate by the end of the summer. This will increase commercial mortgage repayments and bridging loan rates. Landlords may pass on these increased costs by raising rents.
House prices have shown a slight increase of 1.8% in the three months to the end of June 2018. There is a shortage of homes, so it is not expected that house prices will fall. It could be an appropriate time for landlords to buy property.