Average rent nears £1,000 a month
- Published: Tuesday 11 May, 2021
- By: Commercial Trust
According to new data from HomeLet, an insurance provider for the PRS, average rents across the UK are nearing £1,000 a month.
This is following the fifth consecutive monthly increase this year.
Average rent increasing
According to the data, April’s average rental increase to £966 was the highest on record as well as a 2.9% increase year on year.
In London, where rents continued to fall for the 11th month in a row, average rent stands at £1,580, 5.3% lower than this time last year.
If London’s data was excluded from the average UK data, the rents from across the UK would stand at £853 instead.
The highest amount of annual growth was seen in the South West and the East Midlands, where average monthly rents are £955 and £709.
HomeLet and Let Alliance chief executive Andy Halstead says commented on the findings:
“We’re continuing to see a sustained demand for let property; against a backdrop of reduced stock, with landlords facing increased costs and growing concerns about legislative changes. “
“As we gradually ease from protective measures, the stark reality is that we’re fast approaching a summer where rental prices could accelerate at a rate never seen before.”
“Almost a quarter of adults in the UK live in the private rented sector. We all agree that the industry works best when balancing the needs of all parties, critically between landlords and tenants.”
“The common misconception is that increases in rents are solely driven by unscrupulous landlords trying to maximise profits. That is simply not true.”
This reiteration comes at a key point for landlords, with the final deadline of the eviction ban ever closer, landlords are likely to be painted in a bad light as they fight to have their properties returned to them.
Landlords at loss
Halstead goes on to discuss the other issues that landlords are facing outside of the pandemic.
“Landlords have been hit by a sustained raft of legislative changes, which mean that their costs to let property have had to increase.”
“With the Tenant Fees Act as an example, costs are ultimately passed on to tenants through higher rents – the same group who should have benefited most from that legislation.”
“The ban on all tenant evictions [during the pandemic] and plans to abolish Section 21 may prompt some landlords to consider exiting the market when they’re able to, causing yet more strain on property supply.”
Whilst the rental market remains this positive as we move into the second quarter of 2021, it will be interesting to watch the developments that the UK Government will bring in, or remove, once the financial support for those during the pandemic comes to an end.
This information should not be interpreted as financial advice. Mortgage and loan rates are subject to change.