Average rent for homes across England and Wales is now at £792 per month, an increase of 1.8% over the last 12 months.
However according to the latest buy-to-let index from Your Move, home rents in the short-term have fallen 0.2% since April 2016.
Rent rises have varied across the regions with London slowing down to 1.0% (£1,220 per month) over the last 12 months – compared to the peak rise of 11.6% in September 2015.
The East Midlands saw a rise of 7.3% (£612 per month) followed by the West Midlands with 5.5% (£602 per month) increase in annual rent. Yearly rent rises in East of England rose by 3.6% (£849 per month) over the last 12 months.
The latest data also shows that:
- Rental arrears rose to 9.3% in May 2016, as compared to 8.1% in 2016
- Landlords saw total returns of 10.2% over the 12 months to May, a slight fall from 10.7% the month before (the 12 months to April).
Adrian Gill, director of lettings agents Your Move, said:
“Overall the tax changes to the buy-to-let industry will discourage some property investors, and most of the properties that became available to let in May will have been planned purchases brought forward from later in the year. The net effect will not be more properties to let – quite the opposite.
“If new regulations and taxes produce a drought of homes to let, then the overall shortage of housing in the UK will only bite harder for tenants. “