It may seem like doom and gloom for private landlords at the moment, but according to official figures from the Office for National Statistics, we’ve actually got something (small) to celebrate.
The index of private housing rental prices for 20157/2018 has revealed that the market as a whole has seen overall growth of 0.9% since mid-September 2017.
Rates in London actually decreased by 0.3% and given the density of rental properties in the capital, this figure actually brings the rest of the country down fairly significantly. Take London rates out of the equation and we can actually see an uplift of about 1.5% nationally.
Landlords in Norther Ireland can toast the greatest success, with the highest rate of change across the whole British Isles. They can celebrate an increase of 1.7%, whilst Scottish landlords are feeling the pinch, with the weakest rental growth of just 0.5%. However, with such a significant overhaul of the Scottish system in place this year and rent caps in place, it is unsurprising that there is only a minimal increase.
Regionally, the East Midlands are storing ahead, with growth at 2,8%, followed swiftly by the South West at 2.1%.
The increase in rents seen elsewhere (other than London) in the country is not unexpected given recent reports suggesting supply is reducing while demand remains strong. As landlords exit the market due to the rising cost of letting, tenants will continue to bear the burden of the gap between demand and supply. The Government should consider these figures in the context of a dynamic private rented sector and housing market, and ensure that future policy interventions consider the wider impact on landlords’ willingness to invest.Meera Chindooroy, Policy and Public Affairs Manager at the National Landlords Association (NLA)
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