Taylor Scott International News
Average UK rents increased by 3.8% in 2015 despite a small seasonal dip of 0.2% in December, according to the latest index to be published. Housing shortages across the country means that rental increases have outpaced wages in many parts and three bedroom properties have seen the fastest rent rises, according to the Landbay Rental Index. This takes the average rent to £1,280 per month, with the highest rents found in London at £2,047, followed by the South East at £1,019 and then a big drop to the East of England at £863. Every region has seen rents up year on year. This was led by Northern Ireland with rents up 6.7% compared to 2014, followed by the East of England up 5.6%, Scotland up 4.5%, the West Midlands up 4.4%, the South West up 4.1% and London up 4%. The South East saw annual growth of 3.7%, followed by the East Midlands and Wales, both at 3%, then Yorkshire and the Humber at 2.1%, the North East 1.8%, and the North West at 0.9%. Compared to 2014, three bedroom properties have seen the biggest increase in the average rental price, up 5.2% to £1,484 in 2015 suggesting that family homes and properties for sharers are in highest demand. The average rent for a one bedroom home has climbed 3.2% to £1,042, a two bedroom home by 3.9% to £1,243, and above three bedrooms by 1.5% to £2,166. Commuter hotspots surrounding London were amongst the country’s top risers in rental prices. Luton with a rise of 11.1%, Medway up 8.8% and Thurrock up 7.3 were in the top five for rent price increases during 2015 when comparing rents from December 2014 to December 2015, a sign that many working in the capital are priced out from living there. With counties to the North, East and South of London all showing higher than average increases in rent prices during 2015, an evident ripple effect is appearing in southern parts of England, the index report suggests. ‘Despite a small seasonal dip towards the end of the year, rents rose significantly ahead of wages in 2015,’ said John Goodall, chief executive officer of Landbay. ‘Rents often track wages as consumers with more pay compete for the most desirable rental properties, but the fact that rents are outpacing wages is a clear sign of the shortage in properties to rent as large parts of the UK face an acute housing shortage. This trend is clear in London and the South East, along with large parts of the East Midlands and East Anglia, and it is most evident for three bedroom properties,’ he explained. ‘Based on its recent policy changes for the private rental sector such as the new stamp duty surcharge and changes to tax relief on mortgage interest, the Government seems intent on weeding out amateurs from the ranks of new buy to let investors. If it is successful, our rental index suggests that… Taylor Scott International
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