UK rents continue rising to new heights

UK rents continue rising to new heights

8:05 AM, 2nd September 2022, About a month ago

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Every region in the UK has seen annual and monthly rent growth with the average price now standing at £1,143, one index reveals.

According to HomeLet, the average rent in August grew by 8.5% from last year – and rose by 1.4% from July’s figure.

However, the highest rents are in London where tenants are paying an average of £1,898 – that’s a price rise of 1.6% on the month before, and 10.8% annually.

When the capital’s rent is removed from the data, the average rent is £961 per month. That is 7.7% higher than in August 2021.

But the highest rent rises were seen by landlords in Scotland who say prices rise by 13.6% to reach £861.

In Northern Ireland, prices rose from July by 2.4% and are now £795. The annual rise is 12.9% – which puts it in second place.

Costs directly impacting landlords and their tenants

Andy Halstead, the chief executive of HomeLet and Let Alliance, said: “Costs of all kinds are rising, directly impacting landlords and their tenants.

“Factors like increasing mortgage interest rates, changes in taxation, and bills for improvements to meet new government energy efficiency standards are growing pressures on landlords.”

He added: “With high demand, tenants’ affordability constraints will start to be stretched.

“The value letting agents can provide to both tenants and landlords is only increasing in the current market.

“High-quality tenant checks and relevant insurance have become an essential consideration for landlords.”

He said that his company would do everything it can to support customers through this difficult period.

Mr Halstead said: “We expect rental prices for new tenancies will continue to increase.

“It’s a challenging position for both landlords and tenants.

“Whilst landlords’ cost bases are being squeezed, tenants’ living costs are only getting worse.”

Rental figures from the August 2022 HomeLet Rental Index

In fourth place for the highest annual rent rise is Greater London where tenants are paying 9.9% more than last year at £901, and that region is followed the South East where rents grew by 8.1% to £1,224.

Landlords in Wales there was a 7.6% annual rise – and a 1.3% monthly rise – for the average rent of £778.

Yorkshire and Humberside now have an average rent of £778, a monthly rise of 1.2% and an annual rise of 7.5%.

Tenants in the West Midlands are now paying £846 on average, a rise of 1.3% on July, and an annual increase of 7.1%.

Close behind is the East of England with rises of .09% monthly, and 6.9% annually for rents to reach £1,091.

Landlords in the East Midlands saw rents grow from July by 1% and annually by 6.3% for an average of £789.

And in the North East, the average rent grew by 0.7% in a month and by 4% annually and tenants are now paying £595 on average.



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