UK rent prices are nearly 9% higher than last year

UK rent prices are nearly 9% higher than last year

9:31 AM, 4th December 2023, About 3 months ago 1

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The average rent in the UK is now at £1,279, down by 0.3% from last month’s figures – but this is still 8.85% higher than in November 2022, when the average rent was £1,175, one index reveals.

The data from HomeLet shows that the average rent in the UK excluding London is £1,066, down by 0.2% compared to October 2023 and up by 9.1% compared to November 2022.

The capital’s average rent has fallen by 0.8% from last month to £2,174, which is 8.1% higher than in November 2022.

The cheapest region in England, the North East, saw a price decrease of 1.8% to £665.

The most expensive region outside London, the South East, saw a slight increase of 0.1% to £1,308.

‘Government indicated more support for renters’

Andy Halstead, HomeLet’s chief executive, said: “Though the autumn budget laid out by the Government indicated more support for renters, in areas such as London, which has seen rent increase by £417 since 2021, this money will barely scratch the surface when it comes to managing increasing costs.

“The problem is not just rising rent payments, but also the increasing cost of food and other household bills.”

He added: “I hope this is a sign of more positive movement in the market on the horizon, as spiralling costs are beneficial for neither landlord nor tenant; and we strive to support both.

“Especially for landlords with mortgages, the outlook is bleak for some time to come.”

Average rents in Wales

HomeLet also reveals that average rents in Wales rose to £867, 0.5% higher than last month and 7.7% higher than November 2022.

The average rent in Scotland fell by 0.1% to £849 but was 8.6% higher than November 2022.

In Northern Ireland, average rents remained unchanged at £726, but were 7.8% higher than November 2022.

The East of England saw the highest monthly increase in rent prices, up by 0.6% to £1,223 – followed by the West Midlands, which saw a 0.5% increase to £1,000.

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Easy rider

12:02 PM, 4th December 2023, About 3 months ago

Rent rises tend to lag behind general inflation.

The Bank of England is reactive rather than proactive when increasing interest rates (to control inflation). In turn, landlords tend to be reactive when increasing rents (in response to the rises in interest rates and/or inflation).

This means that if inflation rises in January, the Bank of England would raise rates in February or March. Lenders would increase mortgages immediately for those on variable or tracker rates. Rates would rise later for those on fixed deals. Landlords on variable or tracker rates with periodic ASTs will start to increase rents in March or April. Landlords with fixed term ASTs will need to wait until the fixed term expires.

Rents will rise much keep quickly next year as LHA rates are reset and more landlords come to the end of the fixed rate mortgage deals and fixed rate tenancies come to an end.

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