14:41 PM, 3rd August 2022, About A week ago 2
Fears have been raised that landlords could be pushed out of the market if tenants cannot afford to pay fast-rising rents with rising living costs.
HomeLet has released data that shows that every UK region has seen monthly and annual rent price growth.
The highest rent is in the capital where the average rent is now £1,868.
That means that renters in London have seen the country’s highest annual rise in rents of 13.6%.
And with a falling supply in property to rent means there is now a competitive market for tenants looking to rent a home.
This is reflected in the average rent increase for June – when London is excluded – of 1.3% to reach £948.
However, HomeLet says that the annual rent rise for the UK is, on average, 8%.
The largest monthly rent rise was seen by tenants in Scotland where rent prices grew by 3.4% in June and rents are now an average of £840.
Andy Halstead, the chief executive of HomeLet, said: “This month’s figures paint a picture of a rental market that is struggling to meet the needs of renters or landlords, with spiralling prices a bad sign for both parties.
“One of the main factors leading to rising rent prices is a lack of supply on the market to match demand.
“This problem could worsen if landlords continue to leave the market, leaving a rapidly shrinking supply of available rental properties.”
He added: “The issue is reflected by the overall findings from our recent Landlord Survey, where 18% of all landlords that we spoke to said that they expect to reduce their portfolio or leave the sector entirely in the near future – this figure rises higher to 22% for landlords based in London.
“The same survey revealed that four out of five renters (78%) are worried about how they will pay their rent.
“A market too volatile for landlords to rely on receiving rents due, and properties too expensive for renters to cope with, is clearly unsustainable.”