Rents surge across Britain since last Halloween

Rents continue to rise as landlord uncertainty over the Renters’ Rights Act sees rental supply shrink, according to new analysis.

A report by lettings agents Benham & Reeves shows which areas of the rental market are haunting tenants this Halloween, revealing the largest increases in average monthly rents since this time last year.

The Renters’ Rights Act received Royal Assent this week, but the government has yet to provide a timeline for when the new rules will come into effect.

Across Britain, the average monthly cost of renting is up by 4.6%

According to the report, across Britain, the average monthly cost of renting is up by 4.6% (£60) since last Halloween. The North East has seen the largest regional increase at 8.1%, although every other area of Britain has also seen an uplift.

In Newport, Wales, tenants are set to get the biggest fright this Halloween, with the average cost of renting rising by 16.7% (£134) since last year.

Other areas include Newcastle upon Tyne, where average monthly rents have increased by 12.5% (£126), followed by Broxbourne in the East of England, up 11.4% (£167).

When it comes to the largest cash increases since last Halloween, London dominates the table. Camden has seen the biggest annual jump of all, with rents now £227 higher than last year at £2,796 per month.

Lambeth follows closely with an increase of £208 to £2,454, while Barking and Dagenham has climbed by £169 to £1,659.

Prolonged uncertainty of the Renters’ Rights Act causing some landlords to exit the sector

Marc von Grundherr, director of Benham and Reeves, says with demand outstripping supply and the Renters’ Rights Act creating uncertainty for landlords, rental prices are under further pressure.

He said: “While the wider housing market has seen steady but measured growth since last Halloween, the rental sector tells a very different story. Demand for rental homes remains exceptionally high, and with the prolonged uncertainty of the Renters’ Rights Act causing some landlords to exit the sector, there is even less stock to satisfy this demand.

“With tenants far outnumbering available homes, it’s no surprise that rental values have climbed across much of the nation and the variety of locations within the top largest percentage increases demonstrates that it’s not a problem confined to just one area of the market.

“Of course, even though only two London boroughs feature among the top ten for annual percentage growth, the sheer cost of renting in the capital means that even the most modest percentage increase translates into some of the biggest pound-for-pound rises anywhere in the country.”

The report also reveals Broxbourne, Kensington and Chelsea, and Richmond upon Thames have all seen monthly rents rise by around £160, while Hackney, Oxford, Newham, Wandsworth, and Bath and North East Somerset also rank among the most expensive hikes in cash terms.