By Average asking rents for London property have risen 8.2 per cent on an annual basis in the first quarter of 2019, according to data from real estate portal Rightmove, as part of its Rental Trends Tracker.
Rightmove claims this latest rise in London asking rent prices is the fastest since it started keeping records back in 2012. Indeed, it would appear the average asking price for rental property is at an all-time-high, with the average renter expecting to pay £2,093 per month.
The supply of available rental property in London has fallen by as much as 33 per cent, helping contribute to the unprecedented increase in rental value.
This comes, following news in March that the government intends to boost the building of new homes. Chancellor Philip Hammond set a housebuilding target of 300,000 new homes per year by the mid-2020s.
Lack of stock
Miles Shipside, commercial director of Rightmove, remarked that the fundamentals had changed since 2016, when the government had introduced new Stamp Duty taxes. He said: “There was a temporary slowing and drop in rents in London when the second home Stamp Duty tax came in back in 2016…leading to a huge increase in choice.”
However, since 2016, Mr Shipside added there was no increase in the supply of rental property in the ensuing years. He added: “The lack of new stock since that time has led to rents increasing again…Outside London, the pattern is not as extreme, but there is still a significant drop in fresh choice.”
High demand for rental
Mr Shipside claimed there was still significant demand in the UK rental property sector, stating that: “Perhaps it’s a good time for some investors to consider buying up properties to let out, as the tenant demand is definitely there.”
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