Research by HomeLet shows that rents on new tenancies outside London over the three months to March were on average 4.9 per cent higher than in the same period of last year. In London the increase was 7.7 per cent.
However this data - just released by recorded during March itself - comes ahead of the stamp duty increase for landlords buying new properties to let, new rules from regulators on buy to let lending, and the phased reduction in tax relief for landlords.
HomeLet’s own data already shows evidence of landlords taking action ahead of the stamp duty changes, with 37 per cent of insurance policies being purchased by landlords with new properties compared to just 24 per cent in the same period last year. This fits with recent data from the Council of Mortgage Lenders showing a spike in buy to let lending ahead of the stamp duty increase.
London’s rental market, where the average rent on a new tenancy is now £1,536, continues to see rents rise more quickly than in other areas of the country.
Just one area, north west England, saw lower rents on new tenancies over the three months to March, with the HomeLet index recording a fall of 3.5 per cent over the year.