Landlords are increasing rent prices due to the recent introduction of buy-to-let tax regulations, according to a study.
Estate agent Your Move analysed rental prices on around 20,000 properties and found the average rent in England and Wales rose by 3.1% in the past year to £874.
The rise in rental prices can be attributed to the recent tax changes affecting landlords, such as the mortgage interest relief and 3% stamp duty land tax surcharge.
Tax changes have also restricted the supply of new properties on the market, with a fall in housing stock levels pushing up rent prices.
Every region apart from the South West saw rental prices increase in the year to July 2017, with rents in the South West down 2.2% to an average of £667 per month.
Wales saw the biggest rise in rent over the same period, with prices up 4.3% to £595 per month.
Other areas to experience average monthly rental increases of more than 3% in the past 12 months include:
- the South East – up 3.6% to £884
- the North West – up 3.1% to £630.
Richard Waind, director of Your Move, said:
“We are now starting to see the real impact of the stamp duty revision, plus the additional tax changes which have hit landlords hard.
“The outcome has seen a decline in the number of rental properties on the market and this has had the effect of pushing up prices for tenants.”
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