RENT rose in the West Midlands this year despite negative rental growth in the UK, according to the Landbay national rent review.
The report also makes miserable reading for millennials many of whom have lost optimism in ever owning a home.
The findings show a significant slump in London has dragged down UK rents which fell by -0.01% in November 2017- the first time rental growth has entered negative territory in at least half a decade.
The average rent paid for a UK property grew by 0.53 per cent in 2017 (year to date), with falling rents in London (-0.83 per cent) weighing down otherwise resilient rental growth elsewhere (1.27 per cent).
The study shows that average rent per month in the West Midlands is below the average disregarding London rent rates.
The regional rate is £682.80 which has grown by 1.52 per cent since last year.
Removing London from the equation puts average rents at £759, up from £750 at the turn of the year.
The figures have affected confidence for prospective home owners.
As it stands, 41 per cent of millennials don’t expect to ever own a home of their own, relying instead on the private rental sector to support them into old age.
The report shows millennials renting a property outside London from age 21 will on average spend £110,800 on rent by the time they buy a house, or £1.1million if they become a lifetime renter.
John Goodall, chief executive and founder of Landbay, said: “Landlords have faced up to challenge after challenge over the past two years, from stricter regulation, reductions to tax relief, and a significant stamp duty tax hike when buying a buy to let property.
“With interest rates now rising, and the TFS coming to an end in February, we expect upward rental pressure to be just around the corner.
“Without a radical house building plan for purchase as well as purpose-built rental properties, rental prices are in danger of soaring over the coming decades.”
As for millennials getting on the housing ladder, she said: “While younger people have always been overrepresented in the private rented sector, over the last decade there has been a marked increase in the proportion of younger households relying on the buy to let market.
“The Government is giving off strong signals that it is ready to tackle the supply shortages gripping the nation, while also improving standards, affordability and the institutional supply of rental properties in particular.
“This can only be good news if it becomes reality, but with so many of the issues being systemic, only time will tell if these measures will have the desired effect.”
