0:01 AM, 9th December 2022, About 2 months ago 4
Rents across the UK continue to hit new highs with the HomeLet Rental Index revealing that tenants are now paying, on average, £1,175 per month for a new tenancy.
That’s a rise of 0.3% from October‘s figure – and it is up 11.1% from 12 months ago.
But it appears that landlords are becoming increasingly worried about a tenant’s ability to pay rent as the cost-of-living crisis continues.
The data reveals that every UK region is seeing annual growth but for tenants in London, they have seen rents rise by 1.1% to reach an average price of £2,011.
However, excluding London, the average rent is 9.9% higher than last year, and 0.1% higher than in October – with rents now at £977.
When analysed, HomeLet says that landlords in the North West have seen the highest monthly growth at 1.2%, with an average rent of £871.
Andy Halstead, the chief executive of HomeLet and Let Alliance, said: “The end of 2022 is almost upon us, and the story of the year is one of rapid growth in UK rent prices.
“In January 2022, the UK’s average rent was £1,064; by November 2022, it had risen to £1,175, a 10% increase in less than a year.”
He added: “Our message has been consistent throughout this time. Landlords are concerned about the ability of tenants to pay their rent and potential new legislation, which has contributed to a shortage of available rental properties.
“This lack of supply to meet the demand is sure to see prices continue to rise at a time when the cost-of-living crisis is making things difficult for many people on all fronts.
“We will likely see a challenging year for the private rental sector in 2023.”
He continued: “In a recent survey of landlords from HomeLet with Dataloft, four out of 10 landlords (40%) named the cost-of-living crisis and its effect on the ability of tenants to pay rent as their biggest concern over the next 12 months.
“The concerns appear to be well founded, as a concurrent survey of 12,000 tenants revealed that just one in ten (11%) think the cost-of-living crisis will not impact their ability to pay rent.”
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