Wales was the only region to see rents decline annually in June as rental growth remained below the rate of inflation, referencing firm HomeLet says.
The firm’s figures for June show rents were up 1.8% annually to £924 a month on average, below the current inflation rate of 2.4%.
Only Wales saw a yearly fall, down 0.8% to £603 a month while growth was flat in the south-east
Northern Ireland showed the highest year-on-year increase, up 5.1% to £641 a month.
On a monthly basis, rents were up by 0.5%, growing in 10 out of 12 regions and led by a 4.1% increase in the west midlands to £689.
Welsh rents also fell on a monthly basis by 0.2% to £603, while the north east saw a 0.8% drop to £529.
Martin Totty, chief executive of HomeLet, said: “Over the next quarter I think there are a lot of factors at play in the private rented sector in both demand for and supply of properties impacting average rents.
“We don’t yet know if the Government’s squeeze on private landlords via taxation changes and more regulation will discourage their continued participation in this important sector and begin to reduce supply.
“Any constriction of the number of properties available for rent can’t be good news for tenants if all it achieves is to increase rents.
“However, the demand for rental properties remains strong and will continue in the near term, which has to be positive for property owners.
“If some landlords do choose to sell up there are many who will see that as an opportunity to improve their yields as demand still exceeds supply, a point many commentators have made via the many consultations that the Government has held.”
Brexit, whatever your view, is cooling the economy. Threat of global trade war ditto. When the economy dips, demand switches from buying to letting.
Hold or reduce supply (nobody has sat down and assessed the cumulative effect on landlords of all recent measures) and rents will increase.
Add in 3 year tenancies (new Housing Minister; new initiative, obvs) to cull back supply a bit further.
Build to rent supply chain growing fast but still tiny compared to conventional PRS.
We will see rents continue to grow. Aspirants will save their deposits more slowly. “Just about managings” will struggle more. Marginals will fail and find themselves in dodgy properties with bad landlords, or worse, homeless.
There is no joined up thinking on the PRS. Knee-jerk policy calls based not on evidence but on potential vote wins and headlines for revolving door Housing Ministers.
The housing of our nation is too important and too complex for politicians. It requires long term planning. Take it away from them and let’s have a cross-party, evidence based Housing Commission.
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Ironically, housing is one of the few areas you’d want politicians to involve themselves in (and no tv this current ‘stab-in-the-dark’ approach), yet they’re too busy with endless meddling and legislation in almost every other area of life and global grandstanding that is simply not necessary.
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HomeLet CEO says there is no evidence that government attacks on private landlords are discouraging landlords from participating in the PRS. I don’t know where he’s been this past year! There is ample evidence to show landlords are leaving the PRS in droves as a direct result of actions such as s.24.
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Absolutely! 46,000 fewer rental properties and homelessness increasing rapidly. Is Homelet looking at UK figures???
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