Average UK rents are up this month
The average cost of a new let in Britain increased to £964 per calendar month in July but the speed of rental growth continued to slow to 0.2 per cent, the latest lettings index shows.
Wales recorded the highest rental growth with rents up 4.9 per cent year on year to £680, followed by the Midlands up 2.4 per cent to £684 while the South West and the North both saw a rise of 0.9 per cent to £1,042 and £638.
The index from Hamptons International also shows that rents increased on an annual basis by 0.7 per cent in the East of England to an average of £950 per calendar month and by just 0.2 per cent year on year on Scotland to an average of £649.
Richard Truman, Head of Operations from Simple Landlords said: “Increasing the rent can be a difficult issue to raise with a tenant, but it appears landlords are being left with no other choice. The increase in inflation, interest rates, the cost of living and of course new regulations and rising tax to name a few, are making it more and more difficult for landlords to make a profit.”
But in London rents were down by 1.6 per cent year on year to £1,682, the second month in a row that they have fallen.
Within Greater London rents fell by 1.7 per cent in inner London to £2,582 and were down by 1.5 per cent in outer London to £1,511.
Aneisha Beveridge, analyst at Hamptons International , said: “Rental growth slowed to 0.2 per cent across Britain in July.
“Falls in London were offset by higher growth in the rest of the country. Inner London experienced the greatest fall, with rents decreasing for the third consecutive month.”
This month’s report also looked at the number of overseas landlords in the lettings market and found that in the first half of 2018 the proportion of international based landlords in Britain fell to 6 per cent, a record low.
Overall, the proportion of rental homes let by a landlord based overseas has halved since the first half of 2010 when the firm’s records began.
In the first six months of 2010 some 13 per cent of homes let in Britain were owned by an overseas landlord, more than double the proportion in the same period of 2018.
Over the last year the proportion of homes let by an international landlord has fallen a further 2 per cent, a record low across Britain. London has seen a pickup in international based landlords this year.