The calling of the snap election has had no noticeable effect on prices, according to the latest buy to let index from Your Move.
The build up to the general election as well as the pervasive political uncertainty surrounding it has failed to impact the rental market. Seven out of 10 regions encompassed by the index saw rents rise between the snap election announcement in April and May. London rents also saw a monthly rise for the first time in six months.
Rents in the capital were up 0.2 per cent between April and May, reaching an average of £1,276. However, this remains below May 2016’s figures, when properties cost £1,295 per month. The average rent in London’s Zone 2 reached £1,618, nearly £300 higher than that of Zone 3. The lowest rents in London were £1,064 in the boroughs that share the Zone 3 and 4 boundary, with prices in Zone 6 reaching £1,253.
Regionally, Wales led the way. The average Welsh buy to let property was let for £599 in May 2017, up 7.1 per cent year on year. The East of England came in second place, up 4.1 per cent on a yearly basis. The South East, North West, East Midlands and Yorkshire and the Humber were the other regions to post growth of 2 per cent or more. Across England and Wales, the average rent was £814, up 1.3 per cent month on month and 2.8 per cent year on year.
There has been no recorded decline in yields during May, with every region surveyed offering landlords the same return as a month earlier.
Lettings Director at Your Move, Valerie Bannister, commented: ‘Strong and stable was the catchphrase of the election and this was demonstrated in real terms by the rental sector. The majority of England and Wales saw rents increase between Theresa May’s election announcement in April and this survey being conducted in May. Even London, which had seen prices fall in recent months, has returned to growth. Prices in the capital grew on a monthly basis for the first time since November 2016. While landlords have seen yields squeezed in recent times, there are signs this could be stabilising. Returns this month were 4.4 per cent, the same as in April.’