fbpx

Rents in Britain on the rise

cottageThe average price of renting a place to live in the UK, excluding London, went up to £764 a month in the first three months of 2016.

In the Greater London area that figure rose to an average £1,543 per month, according to the latest figures from referencing firm HomeLet.

It said that rents were going up fastest in Scotland, reaching £704 a month, followed by the east Midlands at £646 a month.

On Friday, the Office for National Statistics reported that UK rents rose by 2.6% in the 12 months to March. Its index aims to capture what is happening to rents on existing tenancies as well as newly agreed lets.

Many landlords will be facing higher costs after changes to the tax regime on stamp duty and on wear-and-tear allowances. Some may pass these costs on to tenants.

At the same time, the slowdown in the rate of house price growth may feed into the rental market and act as a brake on rent increases.

Ultimately, however, the system relies on supply and demand.

Pin It