Saturday, February 24, 2024

UK rental prices rise by 0.2%

rental prices

According to data from HomeLet’s rental tracker, average rental prices across the UK are now £951, 4% higher compared with June 2020

Rental prices across the UK rose by 0.2% between August and September, data from HomeLet’s rental tracker shows.

The tracker outlines that average rental prices across the UK are now £951, up by 4% on June 2020.

The North East saw the largest monthly increase, rising by 2.2%.

When excluding London, the average rent in the UK is now £828, up by 3.9% annually.

Year-on-year, the South West recorded the greatest rise in rental prices, increasing by 6.6%; in contrast, over the same timeframe, London noted a 2.8% fall in rental prices.

Martin Totty, chief executive at HomeLet, said: Whilst it is undoubtedly the case many landlords are being supportive of their tenants and agreeing temporary reductions or deferrals, it will be encouraging for them to see rents agreed on new tenancies, in almost all parts of the country, are continuing to hold up and generally edge forward.

He said, this is likely because tenant demand remains strong whilst supply may be a little more constrained if some landlords are selling into a stronger sales market, even if that could be a short term phenomenon.

It also does not help tenants much if, for them, the prospect of securing first time mortgage finance remains as elusive as ever, Totty said.

So, those landlords committed to the sector for the long term and having shown their willingness to confront the multiple headwinds of: taxation change; new regulatory requirements; and, in certain circumstances, longer notice periods to gain possession of their properties, may still be rewarded for their flexibility and their perseverance with reasonable returns on their investment risk, he said.

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