Average UK rent up to £987

by Nick Thompson

10:25 AM, 5th October 2020
About 2 weeks ago

Average UK rent up to £987

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Average UK rent up to £987

The September 2020 HomeLet Rental Index has been released indicating on their figures that the average monthly rental cost in the UK is now £987. This is an increase of 0.2% compared to August and 2.1% annually.

Excluding London, the average rent in the UK is £828, an even greater increase of 0.4% monthly and 3.9% annually.

The South West shows the highest annual increase of 6.6% between September 2019 and 2020.

However, average rents in London are down by 2.8% year-on-year, which is the fourth decrease in annual variance in subsequent months. With an average London monthly rental cost of £1,646 compared to £828 for the rest of the country, it is likely the London market will be affected first and for a greater amount during a recession.

Martin Totty, chief executive of HomeLet, said: “Whilst it’s undoubtedly the case many landlords are being supportive of their tenants and agreeing on temporary reductions or deferrals, it will be encouraging for them to see rents agreed on new tenancies, in almost all parts of the country, are continuing to hold up and generally edge forward.

“This is likely because tenant demand remains strong whilst supply maybe a little more constrained if some landlords are selling into a stronger sales market, even if that could be a short term phenomenon. It also doesn’t help tenants much if, for them, the prospect of securing first-time mortgage finance remains as elusive as ever.

“So, those landlords committed to the sector for the long term and having shown their willingness to confront the multiple headwinds of taxation change, new regulatory requirements and, in certain circumstances, longer notice periods to gain possession of their properties, may still be rewarded for their flexibility and their perseverance with reasonable returns on their investment risk.”

Rental figures from the September 2020 HomeLet Rental Index

Region

Sep-20

Sep-19

Annual Variation

Aug-20

Monthly Variation

South West

£902

£846

6.6%

£899

0.3%

North West

£770

£739

4.2%

£781

-1.4%

Yorkshire & Humberside

£673

£657

2.4%

£678

-0.7%

Scotland

£683

£676

1.0%

£692

-1.3%

North East

£558

£535

4.3%

£546

2.2%

West Midlands

£747

£718

4.0%

£739

1.1%

East Of England

£967

£954

4.3%

£954

1.4%

East Midlands

£678

£653

3.8%

£670

1.2%

Wales

£650

£634

2.5%

£641

1.4%

Northern Ireland

£657

£673

-2.4%

£668

-1.3%

South East

£1,074

£1,045

2.8%

£1,070

0.4%

Greater London

£1,646

£1,694

-2.8%

£1,653

-0.4%

UK

£987

£967

2.1%

£985

0.2%

UK excluding Greater London

£828

£797

3.9%

£825

0.4%

 


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