East of England rents up 6.5%

Ryan Bembridge

January 18, 2016

East of England rents rose by 6.5% in the year to quarter four 2015 – the highest regional increase over the period.

The analysis from Countrywide found that average newly let rents rose by 3.1%, with other big increases taking place in Greater London (4.7%), South West (4.1%) and Scotland (3.9%).

The slowest rent rises took place in Central London (0.5%), the North (1.4%) and the Midlands (1.8%).

One third (34%) of tenants who renewed their tenancy faced higher rents, increasing from 7% last year.

Johnny Morris, research director at Countrywide, said: “A mix of steadily increasing demand and a lack of homes to rent supported rental growth in 2015, even though wage growth remained subdued.  In the capital rising costs meant renters were more likely to move to Outer London or the commuter belt in search of more affordable places to live.
“2016 looks to be a complicated year for landlords as the government focuses its efforts on boosting homeownership.

The additional 3% stamp duty charge, stricter regulation and changes to tax relief from 2017 onwards will all take their toll on investor sentiment and impact behaviour.

“With stock at a premium, the smaller landlords who decide to sell up will add upward pressure to rents, although any rises will be tempered by affordability pressures.”

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