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News: British rents race higher

Fri, 30 Oct 15

British rents are racing higher in the booming private rental sector, as demand from tenants remains strong.

Latest figures from the ONS rental index show that private rental prices paid by tenants in Great Britain rose by 2.7 per cent in the 12 months to September
2015. Private rental prices grew the most (by 2.8 per cent) in England, followed by 1.6 per cent in Scotland and 0.5 per cent in Wales in the 12 months to September 2015.

Rental prices increased in all the English regions over the year to September 2015, with rental prices increasing the most in London (4.1 per cent).

The growth is speeding up, notes the ONS. Indeed, since the beginning of 2012, English rental prices have shown annual increases ranging between 1.4 per cent and 3 per cent year-on-year, with September 2015 rental prices being 2.8 per cent higher than September 2014 rental prices.

John Goodall, CEO and Co-Founder of buy-to-let mortgage lender Landbay, highlights the big causes of rental growth as "the booming job market and the high cost of buying a home, meaning that many are renting for later into life than before".
 
The rapid rise in rents for three bedroom homes, in Landbay’s own research, particularly in areas like Southend on Sea (up 15 per cent) and Windsor and Maidenhead (up 13 per cent), "suggests that families are upping sticks and moving to new areas to take up new jobs", adds Goodall. "When they do that they usually rent first and buy later."

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