The average monthly rent across England & Wales rose 3.3% to £791 per month for in the last year, the first rise since September, new figures show.
According to the latest Buy-to-Let Index from Your Move and Reeds Rains, average rents are 3.3% higher compared to this point last year, an extra £25 per month for tenants.
Adrian Gill, director of Your Move and Reeds Rains, said: “Rent rises could now accelerate further, and gentle spring warmth could start to feel less comfortable. If government attacks on landlords bite – having worsened again in this week’s Budget – the flow of investment from landlords could wilt.
“Landlords are increasingly deliberate in their actions and savvy in their business decisions. But all landlords investing steadily in new property to let are the heroes of the buy-to-let industry, not the villains. Thanks to the business acumen and persistence of landlords, Britain’s private rented sector has become home to millions of households and the only real backstop against the weakness of other tenures.”
East Midlands tenants have seen the fastest annual rent rises, up 7.0% over the last twelve months. This is followed by the West Midlands with 6.3% and the East of England with rents 6.2% higher than in February 2015.
These three regions all stand ahead of London, with rents in the capital up 4.8% on twelve months ago. As recently as November, London consistently led the field in terms of annual rent rises.
A 3% increase on stamp duty is set to take effect from 1 April as part of the government’s attempt to curb the buy-to-let market and free up property for first-time buyers. The basic rate of tax relief landlords can claim on properties is also set to fall to 20% from April 2017.
“Additional taxes on the purchase of new buy-to-let properties will not support the stated aims of these policies – namely to improve home ownership. By attacking buy-to-let, the government will only serve to push up market rents more quickly, stymieing the efforts of many tenants to raise a deposit to buy a home – while also boosting returns for existing landlords with the best advice to navigate new complications,” said Gill.
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Who are the so called advisors to Osborn as rents will now rise ? The faceless civil servants who sit in their offices on a superb salary and inflation proof pension thinking up ways to stop other people making a living. This country is turning into a society run by people who have no connection with ‘normal’ life. I do not think they will achieve their goal of additional revenue from the extra 3% tax as many landlords and prospective landlords will now stop buying and in some cases will sell and withdraw from the market. As there is still a shortage of property the prices will not drop and finding a house to rent will be even harder. Its about time they had some landlords on the panel who have experience of the market to advise them of the consequences. This will now take years to sort out and if some incentive to invest in property is not given there will be many homeless people.