Rental market remains buoyant

The latest rental data show that March’s rental income remains consistent, providing landlords with reassurance into 2021.;
Rent

The latest rental index, from lettings platform Goodlord, show that March’s rental income remains consistent, providing landlords with reassurance into 2021.

Average tenant incomes

Tenants in most regions benefitted from average income increases, the biggest hike in this was seen in the North West, where tenants incomes increased by 12% on average.

Other areas that saw increases in average tenant incomes were the East Midlands, Greater London, North East and South West.

Some areas did see marginal decreases, with the South East’s average tenant income dropping by 0.5%, and the West Midlands seeing a drop of 6%.

An increase in tenant incomes across the UK is good news for landlords. This new data shows that the average salary of a tenant in England now stands at £24,817.

Rental increase

Alongside an increase in tenant incomes, rents continue to rise according to the latest index from HomeLet, a landlord insurance provider.

Nine of the twelve regions that they monitor saw a monthly rise, the largest increase was seen in Northern Ireland, with a 2.9% rental increase between the end of February and March.

One area that continues to go against the trend is London, where demand is still lower than average and tenants are able to negotiate lower rents.

However, London is beginning to show green shoots of recovery. Whilst the annual variation is significantly lower than the rest of the UK (5.2%), the month-by-month breakdown of London rents is slowly climbing back towards a positive percentage (0.9%).

Homes needed

HomeLet and Let Alliance chief executive Andy Halstead commented,

"With almost one in five people living in the private rented sector, it's fitting that the government should focus on it, with an informed policy that strives to achieve a balance between letting agents, landlords and their tenants, but unfortunately that isn't the case at the moment.”

"Property is a long-term investment, and the narrative that landlords and letting agents are driving up rental costs simply isn't true. Professional letting agents and landlords welcome initiatives that improve standards in the sector.”

“Still, the continued assault on landlords through policies that disincentives property investment will only drive rental value upwards for tenants.”

"Whilst tenants may aspire to homeownership in the long term, the private rented sector will always play a vital role in the mobility of the nation and the overall housing supply chain. As demand increases, the UK needs more rental stock for tenants, not less and without policy informed fully by property professionals, rents will rocket to record levels this summer."

This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.