Private rents in Great Britain were up 2.6 per cent in the year to April, according to data released today by the Office of National Statistics (ONS) – and the rental market could get a lot more heating over the summer months.
Unsurprisingly, London was burdened with the largest rent inflation, with rents rising at a rate far beyond the country as a whole, with prices up by 3.7 per cent.
Rents rose the most in England, up by 2.8 per cent, compared to 0.2 per cent in Wales and 0.5 per cent in April.
Rents were unchanged when compared with the year to March 2016, but commentators say that the hike in stamp duty introduced at the beginning of April means rents are set to rise rapidly in the next few months.
Paul Smith, chief executive of haart estate agents, said: "Affordability issues in the sales market push up demand and therefore prices in the rental sector. While the number of properties available to rent surged following a rush from buy-to-let investors in advance of the stamp duty changes on the 1st April, we are now seeing a decline in stock as investors withdraw from the market.
"Ironically, the government’s efforts to help first-time buyers by penalising investors, could end up hindering them as a shortage of rental properties will drive up rents in the long term, making it more difficult to save up for a deposit.”