0:05 AM, 5th June 2023, About 6 months ago 4
Landlords and tenants in the UK have witnessed average rent costs for a new tenancy rocketing by 10% year-on-year, reaching £1,213, research reveals.
The Homelet rental index for May also reveals that the monthly rise in rent last month was 1.2%.
The data highlights that a surge in rental prices is evident across most regions and when London is excluded, the average rent is still 9.5% higher than it was a year ago, standing at £1,016.
The capital has seen an astounding 11.3% annual growth, with a 1.8% increase since last month, taking the average rent to £2,039 – the highest rent figure ever recorded by the index.
In contrast, the North East has experienced a decline in the average rent price with a 2% drop, bringing the average down to £632.
The chief executive of HomeLet and Let Alliance, Andy Halstead, highlights the risks involved for both tenants and landlords due to the high rental prices.
He recommends that landlords consider rent guarantee insurance as more tenants may struggle to pay their rent each month.
Mr Halstead adds: “The fact that the London market is rising in terms of average price while the cheapest area in the country (North-East of England) is falling shows that the level of demand somewhat depends on location, but as a broad rule, there is a shortage of rental properties to meet demand, with many prospective tenants facing a real battle to secure a property.”
He is also predicting that with so much competition from tenants, the UK’s heated rental market will probably cause rent prices to continue their upward trajectory in the coming months.