Rental prices rise across UK

Average rental prices have increased in every UK region for the first time in almost two years, according to new research.

The latest Landbay Rental Index (powered by MIAC) has revealed that the average UK rent in January was a record £1,198 per month, up 0.66% on this time last year.

Average rents in London (£1,876) remained around 2.5 times higher than the rest of the UK (£760).

However, rent growth in London during January (0.03%) was surpassed by both the East Midlands (0.18%) and the East of England (0.13%).

John Goodall, CEO and founder at Landbay, said: “With all the tax and regulatory changes landlords have shouldered over the past couple of years, an uplift in rents has been on the cards for a while, and is likely to continue into 2018.

“Stamp duty changes pushed up transaction costs for landlords back in 2016, as have a raft of new regulations from the PRA landing in 2017.

“Furthermore, the Bank of England’s Term Funding Scheme comes to an end this month, pulling away one of the crutches that has allowed many mainstream lenders to keep mortgage rates so low.

“This – together with gradually rising interest rates – will eventually push up borrowing costs for banks, and consequently for landlords, who will have to pass some of these costs on to tenants in the form of higher rents.”

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