The South West leads the way on rent rises
The South West of England is the leading UK region when it comes to rent increases, as they were 6.6% higher in September than the same month last year.
HomeLet’s Rental Index shows that rents averaged at £902 in the South West in September 2020, up from £846 in September 2019.
There were also strong annual increases in the North East (4.3%), East of England (4.3%) and the North West (4.2%), considering the year we’ve had.
At the other end of the spectrum, Greater London saw rents fall by -2.8%, while they also decreased by -2.4% in Northern Ireland.
Martin Totty, chief executive at HomeLet, said: “Whilst it’s undoubtedly the case many landlords are being supportive of their tenants and agreeing temporary reductions or deferrals, it will be encouraging for them to see rents agreed on new tenancies, in almost all parts of the country, are continuing to hold up and generally edge forward.
“This is likely because tenant demand remains strong whilst supply may be a little more constrained if some landlords are selling into a stronger sales market, even if that could be a short term phenomenon. It also doesn`t help tenants much if, for them, the prospect of securing first time mortgage finance remains as elusive as ever.
“So, those landlords committed to the sector for the long term and having shown their willingness to confront the multiple headwinds of: taxation change; new regulatory requirements; and, in certain circumstances, longer notice periods to gain possession of their properties, may still be rewarded for their flexibility and their perseverance with reasonable returns on their investment risk.”