‘Madness’ as rent prices in the UK soar to record highs

‘Madness’ as rent prices in the UK soar to record highs

0:04 AM, 6th September 2023, About 9 months ago 2

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The average rent price in the UK for July 2023 was £1,243 – that’s a whopping 10.3% increase from the same month last year and 1.1% higher than in June.

That’s according to the latest data from HomeLet, a tenant referencing firm.

The new average rent is the highest average rent price ever recorded by HomeLet, which has been collecting data since 2008.

‘July’s average rental price’

HomeLet’s chief executive, Andy Halstead, said: “July’s average rental price has now hit an astonishing £1,243, the highest average yet.

“This all-time high paired with every region of the UK seeing a month-on-month price rise is a concern for both tenants and landlords.

“We’re edging closer and closer to a situation in which a large portion of potential tenants are simply unable to live, which is a dangerous situation for the market to be in.”

He added: “It is worth saying that extreme rental prices does not equate to all time high margins for landlords either!

“Landlords being unable to rely on rental income is a terrible scenario.”

Most expensive place to rent in the UK

But not all regions are equally affected by the trend in rising rents with London – as usual – remaining the most expensive place to rent in the UK.

Tenants in the capital are paying an average monthly rent of £2,109, up 12.9% year-on-year and 1.5% month-on-month.

However, London’s rent growth rate is not the highest in the UK.

That honour goes to Scotland, which saw a staggering 15.8% annual increase and a 3.5% monthly increase, bringing the average rent price to £973.

That is the largest month-on-month increase anywhere in the UK.

‘North East has been out of kilter’

Mr Halstead said: “The North East has been out of kilter with the rest of the UK in recent months with few price rises.

“However, July 2023 has seen even the North-East rise 1.8% to £636.

“The nationwide skyrocket in rent and mortgage increases is proof that no one is winning, when will it be put to a stop?”

He added: “At the other end of the country, London’s average rental price towering above £2,000 appears to now be the norm, a milestone that was only breached for the first time less than a year ago.

“Now hitting £2,109, London’s crazy rental market is mirroring the UK as a whole and shows no sign of slowing down – the madness continues!”

Cheapest region to rent in the UK

The cheapest region to rent in the UK is still the North East of England, where renters can find a home for just £636 per month on average.

But even there, prices have gone up by 1.8% since June and by 7.7% since July 2022.

Wales also experienced a significant rent increase of 9.1% year-on-year and 1.2% month-on-month, reaching an average of £838 per month.

Excluding London, the UK average rent price is now £1,037 per month, up 9.4% from last year and 1.0% from last month.


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Comments

Teessider

9:28 AM, 6th September 2023, About 9 months ago

Why is it ‘madness’ that rents are rising in line with inflation?

Landlords’ costs are rising faster than inflation. My BTL mortgage has risen sixfold). Fortunately, I have low LTVs so the impact is mitigated but many landlords have 75% LTV and will be making a loss.

The next problem will be falling house prices. Landlords won’t be able to re-mortgage when their current fixed term mortgages end because their LTV requirement will be unattractive to lenders.

The pain hasn’t really started yet.

Fergus Wilson

7:57 AM, 9th September 2023, About 9 months ago

As Interest rises then rents rise in proportion!

Try explaining that to some poor single mum with three small children!

We are all in this together! Try explai9ng that to some single mum with three small children,.

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