Average rent across UK hits all-time high

News at John Francis | 07/09/2021

Article from Property Investor Post Average rents in the private rented sector across the UK have hit a record high of £1,053 per calendar month (pcm), up 6.9% year-on-year, new data shows. According to the HomeLet Rental Index, this is the fifth month in a row that the average price has increased. London recorded the highest monthly increase of any region, with rents up by 4.1% from July to reach £1,713pcm. Wales recorded the highest year-on-year increase with rents up 12.8% to £723pcm. HomeLet and Let Alliance head of business intelligence Rob Wishart said: “Typically, rents for new tenancies will rise in line with the rate of inflation, but that’s not been the case in the past few months. “The demand for housing and certain property types is outstripping supply in many areas, causing upward pressure on rental prices. “We can expect the increase in rents to continue for the foreseeable future, with many regions now seeing unprecedented demand for housing stock and landlords. “In the capital, we have seen yet another price rise, and we may see London accelerate at a faster rate than the rest of the country in the coming months, as international travel ramps up and rates of working from home move in the opposite direction.” He adds: “On the whole, the private rented market has been exceptionally resilient throughout the pandemic, so it’s no surprise that the level of investment is increasing through sectors like build to rent. “Consistent yields over the long term coupled with capital appreciation have only bolstered confidence in the industry even in the face of the disruption we’ve had over the past 18 months. “There’s no doubt that further challenges are ahead in the short term; with the end of the furlough scheme, which still supports around two million people, we expect claims on rent protection products to increase further. “Whilst the pandemic has accelerated the demand for rent protection products, it’s become integral to many letting agents management propositions and has supported the confidence we’re seeing in the sector. https://propertyinvestorpost.com/average-rent-across-uk-hits-all-time-high/