Rents climb in most regions since Renters’ Right Act landed
Marc von Grundherr, of Benham and Reeves, says pent-up tenant demand has been released since the Act was implemented.
Rents are soaring in most regions of England since the Renters’ Rights Act was implemented in May.
New research by Benham and Reeves shows rent levels are rising more quickly in many areas, although the overall national rate is unchanged.
Tenant demand remains extremely robust.”
Marc von Grundherr, Director of Benham and Reeves (pictured), says: “We saw many tenants sitting on the fence while they waited to see what the new landscape would look like, rather than committing to their next move.
“Now that implementation has happened and there is greater clarity around the rules of engagement, we’ve seen that pent-up demand start to return to the market.
“For landlords, this demonstrates the continued strength of the underlying rental market. Tenant demand remains extremely robust and, with rental stock still limited in many areas, an increase in activity naturally creates greater competition for the homes that are available.”
Acceleration
The West Midlands has seen the quickest acceleration in rental growth, rising by 0.8% since the Act came in, compared to growth of just 0.2% during the equivalent period beforehand.
The North West has also seen rental growth speed up, with an increase of 1.2% since implementation versus 0.7% previously.
Yorkshire and the Humber and the North East have seen rental growth increase from 0.5% to 0.9%, according to Benham and Reeves.
London completes the five regions to have seen rents gather pace. The average rent in the Capital has increased by 1% since implementation, from £2,294 to £2,317 per month, compared to 0.6%.
