Rents grew at the slowest pace this year in September
Rents grew at the slowest rate this year in September as landlords absorbed higher tax rates rather than pass them on to tenants.
Across the UK rents grew three per cent in the year to September, according to the HomeLet rental index.
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On average, tenants signing new agreements in September paid an average £910 per month. This was an increase year-on-year, but compared to August, rents were 0.8 per cent cheaper.
In London, rents fell 0.4 per cent month-on-month and, unsurprisingly, the average rent in September was higher than the national average at £1,555 per month.
HomeLet said that inflation in the rental sector is now less than house price inflation, making renting relatively affordable.
Martin Totty, chief executive of HomeLet, said: "Landlords are being very careful to ensure rents remain affordable for tenants.
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"Despite factors such as higher stamp duty on purchases for buy to let investors, it would appear so far that landlords have absorbed any actual or expected decreases in their yields, rather than pass this on through higher rents.
"Landlords and tenants alike will need to monitor the market carefully as we get closer to the April 2017 reduction in tax relief on buy-to-let mortgage interest. The recent trends in rental values appear to be changing, which may yet prove beneficial for both tenants and landlords if it reflects some rebalancing between yields and affordability."