Rent prices and yields for landlords are still strong, as the private rental sector proves resilient to pressures on the British economy, according to Adrian Gill, the Director of Your Move.
Rent Prices and Yields are Still Strong, According to Report
“Landlords are continuing to see strong yield levels and rents are increasing, even if growth is slower than it was previously,” he reports.
Gill’s comments follow the release of the latest Your Move index, which found that rent prices increased in England and Wales by 3.9% in the year to November 2016, taking the average rent to £830 per month.
Although the rental market is cooling in London, the capital remains the most expensive place to rent a home in the country, with rents hitting a record high of £1,295 a month.
On a regional basis, rent prices rose in nine out of ten regions, led by a 13.6% annual increase in the South East, where rents now stand at an average of £875 per month.
The South West was the only region to record a decrease in rents last year, albeit slight, to an average of £656 a month.
Gill believes: “Tenants are now in a much better financial position than earlier in the year. Fewer are struggling with rent payments and this is great news for tenants and landlords alike.
“There is now a great deal of stability in the rental market, and this means there is a solid platform for growth in future months.”
Gill’s observations arrive despite the onset of a year that may prove difficult for the private rental sector.
Not only will landlords see their tax relief on finance costs restricted from 6th April this year, the Government’s database of rogue landlords and letting agents will be introduced on 1st October, as confirmed by ministers.
The ban on letting agent fees for tenants will also be on everyone in the property industry’s lips this year, as landlords work out how they will accommodate extra costs if the fees are passed on to them.
Gill’s comments will provide some slight relief to investors, who may have feared that 2017 will be tough on their finances.