According to newly released figures from the Office of National Statistics, the average private rent paid by tenants has increased by 2.6% since January 2015.
Which regions saw the highest private rent increases?
Official ONS figures show the following private rent increases:
- England – 2.7%
- Scotland – 0.8%
- Wales – 0.3%
According to data history, since 2012, private rent increases in England have shown a 1.4 – 3% rise.
How much did private rent increase in London?
Unsurprisingly, compared to last year, private rent increases in London were at 3.9% compared to January 2015.
In other regions, annual rental increase figures vary. In Yorkshire and the Humber, figures rose from 0.8% to 1.2%, and in the North East from 0.6% to 0.9%.
What could be the reason behind the private rent increase?
Industry insider and landlord Steve Bolton says “ending tax relief for landlords and levying a higher rate of stamp duty will ultimately increase investor’s costs, forcing many to push tenant’s rents up to remain profitable.”
It could be that the rent increase this year is down to the Stamp Duty changes in April – buyers are rushing to complete before these changes, in turn pushing prices up in many regions.
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