Rightmove predicts 2017 rents will grow by 4% outside of London…
For 2017 outside London, Rightmove is projecting a 4% increase in asking price rents.
Beyond London, the property portal reported a 3% rise in rental figures during 2016, whereas inside the capital saw a 4.4% drop. Inner city London figures fell by 5.2%, while a lesser drop of 2.5% was experienced in outer London.
All regions excluding London saw gains, the biggest growth seen in the North and North West with a focus on Yorkshire and the Humber.
Nationally, Rightmove calculated the average monthly rental on a two-bedroom property together with its website’s average asking price for that property type to determine the final yield value. The yield is a landlord’s expected annual rental return as a percentage of the property’s value.
Sam Mitchell, Head of Lettings at Rightmove commented on 2017:
“We definitely won’t see the spike in Q1 purchases that we saw last year as landlords rushed to buy before last April’s new Stamp Duty deadline.
“If the tax changes being phased in from this April lead to even fewer buy-to-let purchases and some landlords deciding to sell, then a tightening of supply in some areas will lead to increasing rents.
“We forecast that asking rents could rise by 4% outside London by the end of 2017, though in London prices are likely to stay flat.”
He also said: “Investors looking for the strongest yields could consider investing in certain areas in the north-west where both demand and yields are high.
“Those with a number of properties in the capital may find that tenants are more price sensitive, so setting realistic rent levels will be the key to avoiding void periods.
“In order to mitigate this, we would recommend landlords asking for longer tenancies to help secure a steady rental income over the next few years while they adjust to what the tax changes will mean for them.”
This news has also been reported on Yahoo! Finance, which can be read by clicking here.