An upbeat market snapshot for the lettings sector claims that one region of the UK has viewed rent increases in extra of 20 per cent a year.
The Dwelling internet page’s latest index reveals year-on-year average rent development reaching 20.5 per cent in the West Midlands. The south west of England rents are up 17.8 per cent on average.
“Such phenomenal rises are as a consequence of an acute shortage of stock to let. We attain no longer inquire supply to rise to satisfy demand in the immediate future, and therefore rents will continue to inflate” says the internet page.
“This may also assist to push up sale costs in the English regions, Scotland and Wales as yields reinforce for prospective investors” it continues.
Nevertheless, Dwelling warns that rental values continue to crash in the Greater London lettings market as a consequence of oversupply; rents are down 18.6 per cent year-on-year although several extra central boroughs registered reductions in the average rent of 30 per cent.
“By contrast, extraordinary scarcity is evident in all other English regions, Scotland and Wales, thereby driving up rents” says the internet page, which has recorded some regions – notably the East Midlands – seeing a collapse of over 50 per cent in the total of newly available rental properties entering the market compared to a year ago.
Doug Shephard, director at Dwelling, says: “Investors understand that ‘money printing’ will no longer fully continue for the foreseeable future nevertheless will increase to possess the tax shortfall caused by the pandemic and present further cheap credit ranking. What is also clear is that government policy is resigned to propping up the UK property market at all costs.
“Holding on to bricks and mortar assets is a no-brainer while rental returns are soaring and other asset classes are looking comparatively volatile.
“Meanwhile, London is seemingly a world apart. Decrease off from international friends and haemorrhaging residents to much less urban climes, rents are in freefall. Correspondingly, as yields collapse, this places downward strain on costs. Hence, fully when rents stabilise will the capital’s sales market be on the road to recovery.”