Rising Rent Outside London

Property portal Rightmove has predicted that rents will rise by 4% outside London this year. According to their data, asking price rents rose by 3% outside London last year, and fell by 4.4% in the capital.

With the exception of London, all regions recorded a rise last year with the highest growth in Yorkshire and the north-west of England.

Rightmove’s head of lettings Sam Mitchell said of the 2017 market: “This year will be one of caution for buy-to-let investors due to tighter lending criteria and increased Stamp Duty…If the tax changes being phased in from this April lead to even fewer buy-to-let purchases and some landlords deciding to sell, then a tightening of supply in some areas will lead to increasing rents. We forecast that asking rents could rise by 4% outside London by the end of 2017, though in London prices are likely to stay flat.”

Landlords will be taking advice from their agents and pushing for longer tenancies to try to prevent void periods during the coming years. Where landlords have a choice of tenant, they may opt to proceed with the one that gives them the longest term of security, without break clauses, even if this offer is slightly lower per month.