The increase in rents can largely be attributed to the reduction of rental properties on the market, which are now at the lowest level since October 2008. So-called ‘accidental landlords’, encouraged by rising prices and strong demand, are now returning to the sales market, a major cause for this tightening of stock levels.
There remains a mixed picture in the regions with five showing increased asking rents, the highest being in the South East (+2.3% to £1,061pcm). Yorkshire and the Humber and Wales were stable, while the remaining four recorded declines, the biggest being in the North East of England (-2.3% to £605pcm).
The capital continues to lead the overall national recovery following seven months of rising rental values. Asking rents rose by 0.7% in March, and are now 2.1% higher than they were 12 months ago. London is followed by Wales which has now had stable or rising rents for the past four months and the North West and Yorkshire and the Humber with three consecutive months.
Nigel Lewis, property expert at FindaProperty.com, said:
“The rental market has had a tumultuous two years but those landlords who managed to hang on despite the oversupply of properties and falling rents can now see the light at the end of the tunnel.
“While rents are still a long way off the peak seen in early 2008, they are slowly rising and the current tightening supply levels as accidental landlords leave the market coupled with strong demand should ensure that returns for serious landlords continue to improve over the course of the year.”
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