Rents falling for first time in years in parts of the UK

Rents falling for first time in years in parts of the UK

Finally some good news from the UK housing market – for renters anyway! Rents have fallen for the first time in almost four years in certain parts of the country.

Three areas of the UK have been lucky enough to have their rents fall, for the first time since 2014, the North West, North East and Yorkshire and the Humber. They all fell by 0.3% compared to the previous year.

The average monthly rent in April in these northern regions was £622.

This is compared to the average national rent price in the UK of £953 a month which has contrastingly seen a price increase of 1.9% in monthly rent year on year.

However, if you live in the South East or South West of England, rent has risen even more with a 2.2% increase compared to last year with an average monthly rent of £1,372.

The Hamptons International Monthly Lettings Index said that there are now 19% more houses available to rent in the northern regions. However, with the increase in stamp duty for second home ownership, that number has dropped by 16% in the South.

Due to the rise of stamp duty, many second home owners have been effected, with many choosing to sell. This has resulted in less homes for rent in the South, whilst the market has remained more steady in the North.

Rent price increase in other areas of the UK

The average Welsh rent is £656 a month an increase of 3.4% whilst in Scotland new let prices were 5.3% down from last April with an average monthly rent price of £584.

Stamp duty rise effecting rent prices

Research analyst for Hamptons International, Aneisha Beveridge said: “Low stock levels in the South continue to drive rental growth as tenants compete for fewer available homes.”

“Since April 2016, the month the stamp duty surcharge was introduced for second homeowners, landlords across Great Britain have sold 88,000 more homes than they bought.

“But landlords are finding new ways to maximise their returns by purchasing properties elsewhere, particularly further North in search of lower stamp duty bills and higher yields.”

Tammy Jones, a solicitor at Birchall Blackburn Law said, “It’s promising, especially for young renters, to see rent decreasing in three regional areas. It’s making renting more affordable and saving a deposit to get onto the housing market more accessible. It will be interesting to see if more regional areas follow suit.”

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Articles in the news:

Rental Market Article

Rents Falling Article