The Office for National Statistics (ONS) has stated that private rental prices paid by tenants in Great Britain rose by 2.6% in the 12 months to March 2016, unchanged when compared with the year to February 2016.
Meanwhile, private rental prices grew by 2.8% in England, 0.2% in Wales and 0.6% in Scotland in the 12 months to March 2016.
In addition, rental prices increased in all the English regions over the year to March 2016, with rental prices increasing the most in London (3.7%).
Steve Griffiths, head of sales and distribution at Kensington, added: “With the cost of rent continuing to rise alongside rapidly increasing house prices, it’s becoming even harder for renters to save the deposit they need to buy a home of their own. With buy-to-let stamp duty rises now in effect and further tax changes on the horizon, the situation for renters could worsen if these increased costs are passed onto tenants.
“The focus of the government’s housing policy has been to increase homeownership, and rightly so, but for many renting can be the only option before making the first step onto the property ladder. It’s therefore essential that any further measures the government takes to encourage homeownership are not to the detriment of renters. Further measures on buy-to-let could have the opposite of the intended effect, as additional costs may be passed on to tenants and therefore threaten the finances of thousands of renters trying to save for a home.”
