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Private Rented Sector Grows As Rents Rise Further in July

The private rented sector (PRS) is showing signs of healthy activity post-Brexit as rents continue to rise in July across most of the UK, says Homelet’s latest rental index.

The private rented sector (PRS) is showing signs of healthy activity post-Brexit as rents continue to rise in July across most of the UK, says Homelet’s latest rental index.

Analysing new tenancy agreements over the month of July, Homelet found that the average rental values had increased in nine out of twelve regions in the UK, indicating healthy activity in the private rented sector.


Although the pace of rental growth in the year to date has been slower when compared to the same period in 2015, the average rental values in the UK (excluding Greater London) has risen by 2.3% year-on-year.


Homelet’s figures also show the average monthly rent in the UK, outside of Greater London, reached £779 in July – a 0.8% rise from June’s average of £773. In the Greater London area, rents rose by 4% year-on-year, also growing at a slower pace when compared to July 2015’s annual growth of 9.5%.


Outside of London, the regions with the largest annual increases were East Anglia, with a 9.7% year-on-year growth and an average rent of £897; and the East Midlands, with a 5.4% annual increase and an average rent of £651.


Furthermore, figures show in July 2016 average rental values in London (£1,599) were 105% higher than the rest of the UK, meaning that the gap between London rents and rents in the rest of the UK is now higher than it was in either July 2015 (102%) or July 2014 (99%).


Homelet’s data shows sustained growth in the private rented sector for landlords, as they were still able to secure higher rents in July, even in the aftermath of the Referendum vote, demonstrating that the continued supply and demand imbalance will remain the main driving force behind the market post-Brexit.

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