Landlords across the UK are now seeing some of their best conditions for years, with tenant demand and the appetite for private rented property pushing up the price they can get for their assets, according to new research.
Demand has been high in the market for some time, and landlords have been welcoming increasing rental prices for the past three years, but Your Move and Reeds Rains' latest rental index has shown that the start of 2015 has brought about some of the fastest rises in the past decade.
It said that the 3.1 per cent annual rise in evidence nationwide in February of this year, which took the cost of renting a property to an average of £766 per calendar month, was the fastest for any month since May 2013. The East of England even saw the cost of renting rise by a staggering 10.2 per cent in the year to the end of February, which was the fastest for any single region at any time in the last five years.
The index showed that this rise is accompanied by an average 0.4 per cent monthly rise across the country in February. This marked a turnaround in fortune for the market, which has seen a temporary slowing in the last few months, with January, December and November each having recorded a slight drop in average property rental prices nationwide.
One of the main reasons the rental market is so strong at the moment, according to Your Move and Reeds Rains, is the simple fact that people are flocking towards the areas with more jobs. It means more young professionals in the capital in particular, which has meant a bump in the number of people looking to rent in and around London.
In recent times, it has been reported that more landlords are now investing in the outskirts of the capital rather than just the centre of the city, with more and more people looking to commute from rental properties than ever before.
"Here we have a perfect example of rents following the jobs market. With growth gathering around London, renters are moving to areas that allow them to commute into the capital. Rents are rising in line with the salaries of these new tenants. It’s a clear illustration of why new builds are important to the wider economy," said Adrian Gill, director of Reeds Rains and Your Move.