The rental market
–– National annual rent rises for new tenancies (excluding London) in the three months to December went up to 4.9% compared to 3.8% in the preceding three-month period. Average rents now stand at £739 pcm.
–– Average rents in London rose by 8% over the same period to reach £1,523 a month which is now more than double (106%) the average outside London.
–– Nine out of ten landlords do not intend to raise rents on their existing tenancies during the first six months of 2016, according to a recent Homelet study.
Rents rises continue to outpace wage growth
Rental rises continue to outpace average household income growth, which is making the average tenancy increasingly unaffordable. While the Government is making commendable efforts to boost home ownership, ministers must bear in mind that the proportion of households renting privately is still increasing – in most cases not by choice – and more needs to be done to boost the number of homes available to rent and this in turn should prevent the market from becoming too competitive and rents from rising too steeply.