Rents begin to rise again

Landlords are seeing that rents on new tenancies are beginning to rise again after a brief dip in January, a rental index reveals.

The findings from Homelet show that the average rent for a new tenancy in March was £1,184 per month.

That’s a year-on-year rise of 9.8% and a rise of 0.8% between February and March.

‘Demand for rental properties remains exceptionally high’

Andy Halstead, the chief executive of HomeLet and Let Alliance, said: “With every region of the country reporting a month-on-month rental price rise, it’s fair to say that demand for rental properties remains exceptionally high.

“It had been interesting to observe a few months of decreased prices in London, but the capital appears to have recovered from a slight dip, in line with rises across the country.”

He added: “The lack of available properties means that the market is likely to continue to be very competitive, so landlords must remain vigilant, and tenants should be aware that finding a suitable property is proving to be a tricky task for many.”

Rents in every UK region have risen in March

The index shows that rents in every UK region have risen in March and year-on-year.

Excluding London, the average rent for a new tenancy in the UK is now 9.1% higher than it was 12 months ago at £993.

However, tenants in the capital are seeing rents 11.8% higher than they were in March 2022.

Rents in London also grew by 0.2% in March to £1,979.

Homelet says the highest rental increase was seen in the North East where rents are 1.6% higher than last month, up to £639.

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