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THIS August brings with it the label of all-time high rental prices, according to the latest data from HomeLet. The headlines from August 2019’s HomeLet Rental Index are:
The average rent in the UK is now at an all-time high figure of £970, this is up by 2.4% (£23) on the same time last year
When London is excluded, the average rent in the UK is now £802, this is up by 2% (£16) on last year
Average rents in London are now £1,689, up by 3.5% (£57) on last year
All 12 of the regions monitored by HomeLet showed an increase in rental values between August 2018 and August 2019
Commenting on the data, chief executive of HomeLet, Martin Totty, said: “In times of uncertainty people tend to defer major purchases – opting to wait for the turbulent times to pass – and there is nothing more ‘major’ than buying property. In the case of Brexit – deal or no-deal – it is still unclear how long the uncertainty will continue, which could spell positive news for private landlords as more people choose to rent rather than risk entering the property market at the wrong point in the cycle.
“Recently released annual results from a number of major quoted property agents point to a resilient private rented sector in contrast to a subdued sales market. With a still unclear outcome of the current political impasse and the increasing prospect of a further extended delay in the UK exiting the European Union, the contrasting fortunes of the two main segments of the housing market seem likely to continue for some time.
“As well as the long-term trend underpinning the private rented sector, recent months have produced growth towards the upper end of the inflation range observed over the past few years. This is perhaps no surprise, at least not to most informed participants in the sector. Indeed, many had predicted this as the inevitable consequence of banning letting agents and landlords from charging up-front fees to tenants. Faced with higher expenses, higher taxation and greater regulation, savvy property owners were always likely to seek to recover these increased charges.
“Thanks to strong demand for rental stock, continued wage growth and a near all-time high level of employment, landlords hold some pricing power and seemingly are now beginning to exercise it. Property professionals pointed out at the time, the fees ban could result in tenants actually paying more, albeit in a different way and over a period of time. Perhaps after all that was an acceptable outcome for all sides. Intended or unintended, it does start to appear to be the consequence.”
HomeLet is the UK’s largest tenant referencing firm, and the HomeLet Rental Index provides the most comprehensive and up-to-date data on rental values in the UK.
The trends reported within the HomeLet Rental Index are brand new tenancies, which were arranged in the most recent period, providing an in-depth insight into the lettings market.
Head to https://homelet.co.uk/homelet-rental-index/ for more information.
|Region||August 2019||July 2019||August 2018||Monthly Variation||Annual Variation|
|Greater London||£1,689||£1,665||£1,632||1.4 %||3.5 %|
|North West||£741||£726||£717||2.1 %||3.3 %|
|South West||£852||£855||£826||-0.4 %||3.1 %|
|Wales||£636||£637||£617||-0.2 %||3.1 %|
|East Midlands||£655||£646||£639||1.4 %||2.5 %|
|East Of England||£930||£925||£913||0.5 %||1.9 %|
|West Midlands||£720||£709||£708||1.6 %||1.7 %|
|Yorkshire & Humberside||£655||£641||£645||2.2 %||1.6 %|
|Scotland||£671||£679||£664||-1.2 %||1.1 %|
|North East||£531||£529||£526||0.4 %||1.0 %|
|South East||£1,064||£1,053||£1,055||1.0 %||0.9 %|
|Northern Ireland||£664||£671||£663||-1.0 %||0.2 %|
|UK||£970||£959||£947||1.1 %||2.4 %|
|UK excluding Greater London||£802||£794||£786||1.0 %||2.0 %|
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