UK rents growing at just a third of the pace evident in 2016
The price landlords are able to get for new tenancies in their UK rental properties is rising in 2017, but the first six months of the year has seen slower increases when compared to the same time in 2016, new data shows.
Recent reports have suggested that rent increases have been steadily getting faster in the second quarter of the year, but according to the new Landbay rental index, the first six months of 2017as a whole have been generally slower than we saw last year.
The organisation said that in the January to June period, the average rental price for UK property climbed by just 0.24 per cent on average.
This means that rents in 2017 are growing at just a third of the pace they were during the same period in 2016. It's part of a general slowdown in growth that has been in evidence across the UK ever since April 2015.
The reason for these slowdowns in the pace of growth is that rental stock has continued to grow across the last few years as more and more landlords invest. The health of the rental sector in the UK has encouraged more and more people to buy, and this has caused rental prices to slow across the last few years as a result.
However, the positive is that even at a time of political uncertainty, and during a period where supply is coming closer to meeting demand, landlords are still enjoying rental income which is growing.
And while trends suggest that over the next few months, rental prices could fall nationwide, the fact that landlords are facing tax changes, and a higher summer tenant demand, should stop this from happening, and prices should still rise.
John Goodall, chief executive officer of Landbay, also said another positive is that landlords are showing no sign of looking to leave the property market in the coming months. Even though many have seen hardships over the last two years in terms of taxation and cost, they continue to spend on rental homes.