Buy to let rents up 8.3% in a year
Average buy to let rents across the country rose by 8.3% in the past 12 months, according to new research.
Tenants are paying an average monthly rent of £874 a month, up from £807 in November 2013.
However, removing London from the figures shows regional buy to let rents are £702, compared with £674 a month last year, which is an increase of just 4.1%.
Rental growth is also patchy, according to the report from landlord insurer HomeLet.
Although nine regions, including London, saw rental growth, three regions saw buy to let rents fall below the November 2013 level.
Buy to let rents in the North West fell from £659 a month in November 2013 to £635 last month – a 3.6% decline
In Wales, rents dropped 2% lower from a year ago, from 524 to £581 a month, while the North West fared even worse, reporting a 2.5% decrease over the year from £659 to £635 a month.
The regions with the highest rent increases were Scotland (up 11.7%), Greater London (11%), and the West Midlands (8.7%).
Homelet spokesman Martin Totty explained buy to let rents often experience a season dip in the late autumn and the figures remain ‘strong and predictable’.
“We see the autumn’s moderation in rental growth as broadly in line with the typical seasonal effect that often sees rental prices balance or even slip into reverse in many areas of the country at this time of year,” he said.
“The outlook for the private rented sector remains positive for several…
reasons – the pace of housebuilding is unlikely to have a significant effect on the supply of property to buy or to rent in the short term, high house prices, and a mortgage market where lending criteria remains constrained, are combining to ensure that the demand from tenants needing rented accommodation remains strong.
“In terms of seasonal highs we see Scotland bucking the trend of the rest of the country, the rapid growth in the Scottish rentals market reflects the strength of the economy north of the border – particularly in oil-rich Aberdeen, which has a thriving rentals sector, but also in other Scottish cities and throughout the country.”