British Property Rents Up 2.7% Annually, Fastest Rate in Three years
It appears that UK's home rental prices are rising, most especially in Britain. While other regions and their market values have gone down, UK's private properties and their market values are presently on the rise.
Private home rental prices in the UK increased by 2.7 percent in the 12 months ending September 2015, but there are considerable regional variations, according to the latest data from the Office of National Statistics, as quoted by Property Wire.
The same article reveals, "Private rental prices grew by 2.8 percent in England, 1.6 percent in Scotland and 0.5 percent in Wales, while excluding London they increased by 1.8 percent year on year. In the capital city, they were up 4.1 percent."
Further data given by Property Wire shows, "Rental prices increased in all the English regions and the largest annual rental price increases were in London followed by the South East at 2.7 percent. The same post also reveals that the East also increased by 2.7 percent. The rise of Rental price is stronger in London than the rest of England since November 2010.
The ONS index report says that the rental market in Great Britain continued to show signs of strength with rental prices now growing at their joint fastest annual rate since October 2012.
Increasing demand for rental properties coupled with low supply may be supporting price growth, it adds. August's ONS House Price Index showed that house price growth has typically been stronger than rent price growth for some years, writes Property Wire.
The Bank of England's Agents' Summary of Business Conditions for the third quarter of 2015 reveals the long-term growth in demand for rental properties continued in the last three months ending September, as noted by anthonypainter.co.uk.
According to Rob Weaver, Director of Investments at property crowdfunding platform, Property Partner, "It is no surprise then that rents rose the most in London, as the supply issue in the capital is especially pronounced."
Weaver added, 'We need to build more homes, but there are some obstacles getting in the way, from slow moving planning departments to the practice of land banking." Recent initiatives such as the Government's decision to make it easier to convert commercial property into residential property "are a step in the right direction," as further stated by Weaver.
Steve Bolton, the founder of Platinum Property Partner, also believes that a shortage of suitable properties, coupled with high demand, both from people priced out of the housing market and those who prefer to rent, is the principle cause of these sustained rises, writes
Bolton further added, "The rate of annual rent rises has increased every month this year, and this is unlikely to change in 2016 given that some landlords may be forced to put up rents in response to rising costs."