Rents rise just above inflation and tenancy duration drops

Rents rise just above inflation and tenancy duration drops

10:34 AM, 11th July 2019, About 3 years ago

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THE latest data from HomeLet shows demand for rental properties remaining high and in examining the data from the last five years, HomeLet has found that the UK as a whole has experienced a 13.9% growth in rental values (12.5% when London is excluded).

Headlines from June 2019’s HomeLet Rental Index are:

The average rent in the UK is now £941, up by 1.8% (£17) on the same time last year

The region with the largest year-on-year increase is Northern Ireland, showing a 4.7% (£30) increase on the same time last year

When London is excluded, the average rent in the UK is now £781, this is up by 1.8% (£14) on last year

Average rents in London are now £1,611, up by 0.9% (£15) on last year

All 12 of the regions monitored by HomeLet showed an increase in rental values between June 2018 and June 2019

The average duration of tenancy for rented properties in June 2019 was 30.7 months, down from 32.1 for the same month last year

Commenting on the data, chief executive of HomeLet, Martin Totty, said; “Since the beginning of the year we have observed a gradual decline in the year-on-year variations in London rents, which reflects what is also being observed in the London housing market thus far in 2019.

“What is most striking about the latest data is the consistency of rental prices we are seeing across the whole UK, with all regions recording a continued year-on-year increase. This is a continuation of the theme we’ve been seeing since mid-2017 as rents have continued to edge up.

“One point of interest in the data is that the average duration of a tenancy has reduced to 30.7 months, from 32.1 months in the same month last year. Whilst this isn’t a significant reduction, the drop does coincide with the introduction of the Tenants Fee Act in England and could be a very early indication of more mobility amongst tenants. It will be interesting to observe what prices do throughout the whole country in the coming months.”

HomeLet is the UK’s largest tenant referencing firm, the HomeLet Rental Index provides the most comprehensive and up-to-date data on rental values in the UK.

The trends reported within the HomeLet Rental Index are brand new tenancies, which were arranged in the most recent period, providing an in-depth insight into the lettings market.

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