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UK PRS Rental Prices Increase Again


Tuesday, February 17, 2015

Rental Prices Continue To Rise As Tenant Demand Still Exceeding Property Supply

Rental Prices Continue To Rise As Tenant Demand Still Exceeding Property Supply

Rental Prices Continue To Rise
As Tenant Demand Still Exceeding Property Supply

There is good news for property investors considering expanding UK rental property portfolios using buy to let mortgages as a leading national estate agency publishes UK PRS rental price data.

The data published by Countrywide shows that the average UK private rented sector (PRS) rental prices have continued to increase, with rental prices rising to around £836 (GBP) a month for many tenants, an increase of 2% year-on-year.

In January 2015, the rental prices for new tenants in privately rented properties in the UK averaged £883 (GBP) per month, up from £859 (GBP) a month in January 2014, an increase of 2.8%.

  • One-bedroom rental properties saw PRS rental prices increase 8.5% to an average of £751 (GBP) a month
  • Two-bedroom rental properties saw PRS rental prices increase by 3.6% to an average of £810 (GBP) a month.
  • Three-bedroom properties saw a 1.6% increase to an average of £930 (GBP) a month
  • Four-bedroom plus properties saw a 3% decrease in rental prices to an average of £1,345 (GBP) a month.

The research also found that the average UK rent for renewed tenancies is now around £835 (GBP) a month.In contrast buy to let mortgage repayments continue to fall thanks to Bank of England (BoE) interest rates remaining at their record low of 0.5% and increasing competition in the marketplace with more buy to let mortgage products on the market than ever before.

Rental prices may be continuing to rise but rent arrears have fallen year-on-year in 10 of the 12 UK regions, except the North of England where rent arrears figures remain unchanged, and a 0.6% increase in rent arrears in Central London.

Legal 4 Landlords are the UK’s market leading specialist suppliers to the lettings industry and offer UK PRS landlords and lettings agents the widest choice of specialist products and services that have been specifically designed to aid the daily operation of their rental property businesses

Sim Sekhon - Legal 4 Landlords

Sim Sekhon – Legal 4 Landlords

Sim Sekhon, spokesman for Legal 4 Landlords said “Renting is a flexible way of living which suits many people’s modern lifestyles, allowing tenants to reside in an area where perhaps they couldn’t afford to purchase a property of their own. With tenant numbers continuing to exceed market expectations, an increasing amount of good quality, affordable rental accommodation is needed to meet the demand. Banks are offering competitive buy-to-let mortgage products in an attempt to make it easier for landlords to offer tenants even longer tenancies. With an abundance of buy to let mortgage products and continued strong tenant demand, now really is an ideal time for landlords to expand their rental property portfolios to provide a more diverse range of affordable rental properties to tenants across the whole of the country”.

Good news for property investors expanding UK rental portfolios using buy to let mortgages

Good news for property investors expanding UK rental portfolios using buy to let mortgages


This was written by Mike Clarke. Posted on at 11:30 am. Filed under Buy To Let. Tagged , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.