Increased risk to landlords sees UK rents reach record highs
UK Average Rent Up to £922 Per Month
UK Average rents at the highest levels since the HRI was launched in 2014.
Government policy risks continued alienation of landlords and skyrocketing rents for tenants.
The vast majority of rental regions show month-on-month rental cost increase.
Northern Ireland shows the largest increase; up 2.9% month-on-month.
Further details and data tables can be found in the full report.
The largest and most reliable source of average rental data in the UK
The Rental Index data is qualified through high-quality tenant referencing, carried out on behalf of over 4,500 UK letting agents. As a group we reference over 1m tenants a year, enabling reporting on newly agreed tenancy applications, with historic data for over 13m tenancy applications.
Commenting on the latest data, Andy Halstead, Group Chief Executive Officer said:
Andy Halstead, Group Chief Executive
“Property professionals know that the private rented sector works best when there’s balance. Ultimately landlords want good tenants, and tenants want a quality property at an affordable price.
“With almost 1 in 5 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, landlord, and their tenants, but unfortunately that isn’t the case at the moment. The continued increase in rents above the rate of inflation is a symptom of current policy.
“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 disincentivizes 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.”
The average rent in the UK is now at a record high of £992 – the fourth increase in as many months.
When London is excluded, the average rent in the UK is now £847, showing an increase of 1% on last month.
Nine of the twelve regions monitored by HomeLet showed a MOM increase in rental values between February 2021 and March 2021, with the Northern Ireland seeing the largest increase of 2.9%.
However, rents in London continue to fall YOY, showing a 5.2% drop between March 2020 and March 2021 - the tenth decrease in annual variance in subsequent months.
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The HomeLet Rental Index incorporates a methodology designed in conjunction with a professor at the London School of Economics. The methodology factors in important elements, such as property type and geography, to create mix adjusted averages. This makes Britain’s most comprehensive rental market benchmark even more insightful. The methodology has been applied retrospectively to our historical rental market data to ensure that the Rental Index can continue to be used to provide analysis of trends in the private rental sector.
The index and average prices are produced using HomeLet’s mix adjusted rental index methodology. This helps to track the representative rental values over time, which factor in changes in the mix of property types and locations of rented properties.
Data is gathered from our tenant referencing service, and our rental amounts are based on actual achieved rental prices with accurate tenancy start dates in a reported month, rather than advertised costs. The data used in the HomeLet Rental Index is aggregated to regional, county and city level only. This ensures that all property or individual records remain strictly anonymous.
The HomeLet Rental Index is prepared from information that we consider is collated with careful attention, but we do not make any statement as to its accuracy or completeness. We reserve the right to vary our methodology and to edit or discontinue this report. The HomeLet Rental Index may not be used for commercial purposes; we shall not be liable for any decisions made or action taken in reliance upon the published data.
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