Good news for landlords as rents in England peak

Based on a survey of 436,810 homes, the Valuation Office Agency has released its annual private rental market summary from 1 October 2019 to 30 September 2020.;
Houses

Based on a survey of 436,810 homes, the Valuation Office Agency has released its annual private rental market summary from 1 October 2019 to 30 September 2020.

The difference between the median of the most and least expensive local authorities was nearly £2,000.

Highest ever median rent

The good news for landlords, is that rents in England are at an all-time high.

The overall median monthly rent was £725 for England, the highest ever recorded.

London rent, unsurprisingly, was nearly double the rest of England at a median of £1,435 per month, albeit with variance between authorities.

London

Whilst having the highest median monthly rent in the UK, London was also the location with the greatest range of prices, accounting for the variance between prices from central to outer London.

The local authority within London with the most expensive median rate was Westminster, which had a median rate of £2,395. Compared to the cheapest London authority of Lewisham at £1,300.

A rental with four or more bedrooms in Westminster could cost you upwards of £7,323 a month.

Compared to the data from the previous report, in March 2020, the median monthly rate for London has seen a slight increase of £10, as previously it was £1,425.

Regional variance

The variance between the median monthly rental prices were heavily dependent on location and number of rooms in the property.

Second to London, the next highest regional rate was the South East, which had a median monthly rent of £895.

The North East had the lowest rate, at just £495.

Both rental prices and the variance around rents were higher in the south of England, than in the Midlands or North.

The least expensive authority was Kingston upon Hull. At £412, there is almost a one thousand pounds difference between that and the lowest rent options in London.

The highest monthly median rent in the North was in Yorkshire and Humber, which at £750, still didn’t come close.

First time buyers

RenterBuyer, a homeownership platform, has said that these rises in rents have led to more tenants trying to get onto the property ladder instead.

Some, as we discussed last week, are even opting to purchase a buy to let property.

However, with the higher deposits required for a buy to let mortgage and first time landlords still being assessed on personal income, where it comes to affordability calculations, the chances are this is not a viable opportunity for most.

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