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Rents Increase Further Despite Stamp Duty Fears

Despite concerns about the impact of an increase in the stamp duty surcharge, recent figures report rents are continuing to increase across the UK.

Rental Property Investments

Despite concerns about the impact of an increase in the stamp duty surcharge, recent figures report rents are continuing to increase across the UK.

Homelet’s April Rental Index, which gathers data from HomeLet’s tenant referencing service, shows that the average rent across the UK, excluding the capital, rose by 5.1% to £764 in April 2016 from the same period in 2015.


The index is particularly relevant as it provides the first comprehensive data on the UK’s private rental activity since the new Stamp Duty changes applied on April 6th.


Figures show that when compared to March’s average rental increase of 4.9%, April’s rise of 5.1% is a sign that the rate at which rents are increasing remains relatively steady.


The news comes as the increase in property transactions witnessed in March, due to landlords rushing to beat the stamp duty surcharge in April, prompted speculation that with more properties available in the rental market –rent increases were set to slow-down.


HomeLet’s April Index also shows that London witnessed a 7.7% increase in rents compared to the same month in 2015 with the average rent now set at £1,543.


Elsewhere in the UK, Scotland was home to the highest rental increase in the year to date and month on month, rising by 11.4% since April 2015 and increasing by 4.0% on the figure from March 2016.


Conversely, the North West saw a decrease of 1.0% year-on-year, with monthly figures showing an increase of 1.7% on March, indicating a more positive outlook for the region.


Average Rental Values April 2016


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