Residential rental growth in the UK set to rise again in 2017
Rental prices in the UK have risen in 2016, albeit a little slower than in previous years, but the pace of growth is expected to increase again in 2017, according to the latest predictions released.
Political uncertainty and changes to the rental market have left the sector somewhat up in the air throughout this year, but even at a time like this, the market has shown strength, with the continued demand for rental sector properties meaning that prices have increased by 1.12 per cent throughout the past 12 months.
At the same point last year, rental prices had climbed by some 2.34 per cent, and since the end of December 2015, there has been a growth of some £132 in the average rental price, which now takes the average monthly price to some £1,188.
Even though this rise is slower than in the past, the market is expected to rebound in 2017, and Landbay has predicted that it will see increases in rental prices again next year as the market starts to find its feet in a post-Brexit, post-Trump world. Price rises should start to trend towards the three to five per cent mark again.
John Goodall, chief executive officer of Landbay, said that in the last year, it is the air of change that has made landlords uncertain about the market's future, be that political or change within the sector. But within the next year, this is expected to settle down, making buy-to-let owners feel more confident once more.
"But the nation has not been equally affected. London has been something of a millstone for the rest of the UK, and tenants will no doubt be relieved that rental pressure has eased since the referendum, but the fall in rents is unlikely to last, and we expect the tide will turn in 2017," said Mr Goodall.
"Tenants will have little choice but to compete for what properties are on offer. As a result we expect rents to rise faster than the pace of inflation next year, with growth tripling."