New research has revealed that the average residential rents in the UK have steadily continued to rise during July, as demand for rental property continues to outweigh supply.
Recent analysis conducted by HomeLet has revealed that the average monthly rent now stands at £779 per month outside of London, marking a 2.3 per cent increase compared to last year. London rents have also increased, rising by four per cent to £1,599 per month within last 12 months.
The increase in rent is likely to tempt new and current landlords to extend their property portfolios in order to take advantage of the current demand and the opportunity for higher profits. However, it's important to make sure you have the right type of landlord insurance.
The rise in demand for private sector rental properties has calmed concerns about the impact of tax changes imposed on the market, and many experts are suggesting that demand is likely to continue for the foreseeable future due to the lack of properties being constructed.
Commenting on HomeLet's figures, Martin Totty, CEO of Barbon Insurance Group, has suggested that this demand is particularly good news for landlords, who are likely to see their rents continue to increase throughout the rest of 2016.
"Ultimately, rents will be determined by supply and demand in the private rental sector; what we know here is that population growth will continue to increase demand, and that the housing stock isn’t growing quickly enough to meet that demand," Mr Totty said. "However, with rents ultimately limited to a tenant’s ability to pay, rents are likely to continue to climb, albeit at the slowing pace noted most recently."
