Rental prices have risen by 2.5% recently and this means that the average rent per month in England and Wales is now £853. These are figures from January 2018. In a report by Your Move, 8 out of 10 regions in England and Wales have seen rental increases. London and the North East are the exceptions here as they have seen rental price drops of 0.8% and 2%.
Landlords should offer Tenants more Incentives
Your Move is pressurising landlords to offer tenants greater incentives to rent. This is in light of the property ladder being out of reach for a lot of people and long term renting being the only viable option. The kinds of incentives that Your Move is recommending are:
- The ability to keep pets
- A shared resident’s garden
- Additional communal living areas
- A gymnasium
- Childcare facilities
What were the Regional Variations?
The highest rents per month are still in London where the average rent is £1,276. This is in spite of the fact that rental prices in the capital have fallen 0.8% over the last 12 months. For people wanting to live in the Travelcard Zone 2 the average rent was £1,651 wheras in Travelcard Zone 5 the average was £1,099.
In the North East of England the average monthly rent is a lot less at £534. It is the cheapest place to rent in England and Wales and experienced a 2% fall in rental prices over the previous 12 months to January 2018.
The North West of England had the strongest growth in rent prices. Big cities such as Manchester and Liverpool, as well as the East Midlands, experienced a 2.9% rent increase in the past year.
The average rental cost per month in Wales is now £595. In the East Midlands it is £652 and the West Midlands £616. The East of England and the South East of England remain high at £894 and £899 respectively. In the South West of England the average is now £676.
Why are these Rental Prices increasing?
The demand for rental properties in the North West is still strong due to the good transportation links for commuters. The area has a wide variety of schools which also strengthens its popularity. The employment opportunities are good too with a number of big businesses, including universities and hospitals situated in the area.
There are similar stories to report for other areas of England and Wales. It is not really a surprise that London has seen a decrease in rental prices. There has to be a limit and it seems that the capital has exceeded this limit.
What does the Future hold for Rental Prices?
Landlords will claim that the rental increases are justified because of the pressure they are now under from the government with stamp duty increases and tax reforms. It is a fine line as there is a limit to what people can pay for their monthly rent and what landlords will accept as a good return on their investment.