A stark warning has been issued by Propertymark chief executive Nathan Emerson – the changes to come in 2025 may stop buy to let even being viable for some landlords.
In response to new rent increases recorded by official government figures, Emerson says: “The lettings market continues to prove challenging to those who rent. Ultimately the sector is about to undergo one of the biggest evolutions in over thirty years with a raft of new legislation proposed that will fundamentally alter the viability for some landlords to even operate.
“It remains important the UK Government encourages a diverse mix of housing options, especially as demand on rental sector is expected to considerably expand across the next ten years.
“It is crucial there is sensible support in situ that encourages long term investment in rental properties and that both tenants and landlords are treated with equal fairness to keep a objective oversight on a system that is increasing coming under additional pressure to keep pace with ever increasing demand.”
His comments come after the release of government data showing private rents were up 9.1% in the year to November, to an average of £1,319 across Britain.
It’s close to the record rise of 9.2% seen in March this year.
Average rents increased to £1,362 (9.3%) in England, £772 (8.0%) in Wales, and £980 (6.5%) in Scotland, in the 12 months to November 2024.
In Northern Ireland, average rents increased by 9.0% in the 12 months to September – the latest data available.
London was the English region with the highest rents inflation in the 12 months to November, at 11.6%. This annual rise was higher than in the 12 months to October 2024 (10.4%), and reflects a new record-high annual growth for London. The rise in London’s annual inflation was caused by two consecutive months of large rent rises, compared with smaller rises a year ago.
Rents annual inflation was lowest in Yorkshire and The Humber, at 5.7% in November 2024. This annual rise was lower than in the 12 months to October 2024 (5.9%).
In November 2024, the average rent was highest in London (£2,206) and lowest in the North East (£700).
