New 2022 research, analysed by LandlordBuyers.com, shows that UK rental prices have increased by a staggering 12.3% since January 2015.
With a rise in UK house prices post-COVID, the rental market continues to remain as busy as ever. The question is: are private rental prices too high/expensive?
- Private rental prices paid by tenants in the UK rose by 2.0% from January 2021 to January 2022
- Private rental prices grew by 2.0% in England, 1.4% in Wales and 2.6% in Scotland from January 2021 to January 2022
- The East Midlands saw the highest annual growth in private rental prices (3.6%) while London, for the second year running, saw the lowest (0.1%)
LandlordBuyers.com Managing Director, Jason Harris-Cohen, said:
“It comes as no coincidence that the additional 3% stamp duty land tax on the purchase of second homes, including buy-to-lets, was announced in 2015. This prompted landlords to question their future investment activity and the first asset disposal flurry was seen.?
Looking ahead, we see a new and completely unique set of factors on the horizon. Increasingly tough minimum energy efficiency standards in the private rental sector, between now and 2028, will do one of two things – compel landlords to invest thousands in their buy-to-lets or, once again, force landlords to reconsider their future in lettings. We may see higher rents imposed so landlords can recover their eco improvements costs, or?we’ll?see another disposal of assets among property investors who?haven’t?got the cash or inclination to go green.”