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UK rents up 2.1% in September: HomeLet

Rents in the UK rose by an average of 2.1 per cent during September, data from HomeLet has found.

September’s increase reflects higher rents agreed on tenancies in almost every area of the country.

Only the South-East of England recorded a negative rate of annual rental price inflation.

The highest increases in rents were seen in Northern Ireland, where rental price inflation hit 4.3 per cent in September.

Followed by the West Midlands at 3.9 per cent and the East Midlands at 3.7 per cent.

According to the data, the average rent agreed on a new tenancy signed last month was £927, compared to £908 in the same month last year.

For the second month running, rents also rose in London, after a four-month period in which annual rental price inflation had slipped into the red.

Rents in the capital were 1.9 per cent higher last month than in September 2016, with the average tenancy agreed in London last month costing £1,593.

HomeLet chief executive Martin Totty says: “Landlords are facing a deluge of higher costs from new regulation, taxation changes on buy-to-let mortgages and the prospect of a near-term rise in interest rates.

“There’s also the added uncertainty over the fall-out from the government’s intention to ban letting agents from charging up-front fees to tenants.

He adds: “In a sector where demand for rental properties generally outstrips supply, most informed commentators suggest higher externally imposed costs on landlords will inevitably translate into higher rents to tenants.”

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