It is believed that rents are expected to increase by nearly 2% across the UK over the next 12 months and 15% over the next five years, as demand for housing increases and renting is still a popular option. The Governments tax changes to the Buy to Let market which have hit small landlords hard. Many have seen their tax breaks being taken away and an increase of stamp duty by 3% on second homes. Many have sold as a result however more people are looking to rent, partly because they cannot afford to buy their own homes.
Figures from the tenant referencing company HomeLet showed average rents in London rose 3.3% year-on-year in July to £1,615 while the average rent in the rest of the UK was up 1% to £777.