Tenants are about to be hit by the first rise in rents since the autumn as new tax policies take their toll on landlords.
Average rents rose by 0.1 per cent between January and February this year according to the latest buy to let index from Your Move and Reeds Rains. It’s the first increase since September 2015.
Rents across England & Wales hit £791 per month as of February, 3.3 higher from the same month last year.
A rise in buy to let taxes has been blamed for pushing up rents, though rents do traditionally rise in the spring.
“Additional taxes on the purchase of new buy to let properties will not support the stated aims of these policies – namely to improve home ownership,” said Adrian Gill, director of lettings agents Your Move and Reeds Rains.
On a regional basis rent rises are led by the midlands. East Midlands tenants have seen the fastest annual rent increase, up seven per cent over the last twelve months. This is followed by the West Midlands with 6.3 per cent and the East of England with rents 6.2 per cent higher than in February 2015.