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Landlords across the UK See Average Rental Costs Raise 3% Higher than 2015

Owners of buy-to-let properties across the UK have seen an average rental growth of 3.0% year-on-year, according to the latest rental index.

Owners of buy-to-let properties across the UK have seen an average rental growth of 3.0% year-on-year, according to the latest rental index.

Homelet’s latest index shows that the average rental values in 10 out of 12 regions in the UK have increased over the last 12 months, with the UK average now standing 3.0% higher in September 2016 than over the same period a year earlier at £910 pcm.


Whilst Homelet reports a slight monthly decline of 0.8% in rental values between August and September 2016, this is only marginally larger than the decreases seen in September 2015 and September 2014, where rents fell by 0.3%.



The highest annual rental increases can be seen in regional markets, with landlords in the West Midlands, the East of England and Wales enjoying the largest growth, as annual rents in these regions increased by 5.6%, 4.7% and 4.1% respectively.


Other high-performing regions include the North West, where rents rose by 4.0% year-on-year, and Northern Ireland, with annual rental costs rising by 3.2%.


The report also highlights that the gap between London and the rest of the UK remained the same as September 2015’s, or 70.9% higher than the UK at an average of £1,555.


To formulate a comprehensive rental index report, Homelet utilises data from its tenant referencing service, which takes into account rental amounts agreed per tenancy, the number of tenants moving into the property and the employment status, income and age of tenants.


Last week, CBRE released new research indicating that the residential markets in prime and secondary regional centres continue to exceed growth in London and the South East.

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