Rental prices edging upwards

Posted: 6/5/2016

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Private rents in the UK went up by 2.6% in the year to March 2016, according to the latest Office of National Statistics figures. The figures themselves are percentages and not actual rental prices.

Rents were up by 2.8% in England, 0.2% in Wales and 0.6% in Scotland, according to the ONS.

Prices rose across all English regions and were up by the most in London at 3.7%, where annual rental price growth has been stronger than the rest of England since November 2010.

Prices for the UK with London stripped out show an overall increase of 2% in rental prices in the 12 months to March.

In England, after London, the biggest annual increases were seen in the east at 3% and the south-east at 2.9%.

The lowest annual increases were in the north east at 0.8%, followed by the north west at 1% and Yorkshire and the Humber at 1.2%.

The ONS said conditions in the housing market overall may be supporting rental price growth but house price growth has been stronger than rental price growth for a number of years.

The ONS cited the RICS’s March report which noted that tenant demand grew for the 15th month in a row but warned that strong demand was being outweighed by shortage of supply.

In greater Belfast we have experienced a significant increase in rents particularly within the last year. Some properties on our books have risen by 10%. This appears to be simply down to demand-supply.
There seems to be a shortage of supply of good rented accommodation, possibly brought about by the Chancellor's moves to restrict landlords from the market. Whilst the policy might be to allow more first time buyers into the market, so far it seems to be back-firing, increasing rents for tenants.

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