Stamp duty land tax surcharge led to 16% fall in buy-to-let property supply in the South
Average rents in Great Britain rose by 1.9% year-on-year in April, according to the latest monthly lettings index by Hamptons International.
The index, formerly provided by Countrywide, reported that rents across the country rose by 0.3% in the month, bringing the average monthly rent to £953.
The strongest annual percentage increases were recorded in the East of England and Wales, with a rental surge of 3.6% (+£33) and 3.4% (+£22) respectively, followed by the Midlands (2.3%, +£15).
Rents in the North, which includes the North West, North East and Yorkshire & the Humber regions, eased by 0.2% (-£1) in April compared with the same month a year earlier.
However, the largest fall in rents was in Scotland, which were down 5.3% (-£33) in April.
Hamptons also noted that the supply of buy-to-let properties in the South has been markedly impacted by the stamp duty surcharge on second home purchases, falling by 16% since April 2016 when the additional costs were introduced.
By comparison, rental housing supply in the North rose by 19%, although across Britain the total number of homes available to rent fell by 5% in April 2018 over the same 2-year period.
Commenting on the index, Hamptons International’s Research Analyst Aneisha Beveridge said: “Low stock levels in the South continue to drive rental growth as tenants compete for fewer available homes.
“But landlords are finding new ways to maximise their returns by purchasing properties elsewhere, particularly further North in search of lower stamp duty bills and higher yields.”
Landlords in the East of England are the most optimistic about their property investments in the future, according to a recent survey.