‘No end to the madness’ as rents top old record
Homelet says there is no sign of rent increases slowing down with new record highs recorded in London and the rest of the UK.
Rents continue to set new records with a further increase last month, tenant referencing company Homelet has revealed.
The average UK rental price has hit another all-time high of £1,261 per month, up 1.4% from July.
In London, prices are soaring, up 1.7% to £2,145, and outside the capital, the average rent is now £1,051.
Even the cheapest rental area, the north east, saw rises of 3.0% from to £655.
Forecast
Meanwhile, Hamptons is forecasting that rents will rise 25% over the next four years, and average house prices will decline 2.5% in the final quarter.
Andy Halstead, CEO at HomeLet & Let Alliance, says: “As summer 2023 prepares to bow out and temperatures drop, rental price records continue to soar across 50,000 new tenancies referenced by Homelet during August alone.
These figures, on top of the current cost of living, are jaw-dropping!”
“Average monthly rent reached £2,145 per month with London included, and outside of London, an incredible £1,051 per month, every single region is reporting a sizeable month-on-month increase.
“These figures, on top of the current cost of living, are jaw-dropping!” he says.
Struggles
“It isn’t just tenants who are feeling the financial strains of increasing rental prices. The exacerbating economic issues around rental prices are also leaving landlords with increasing rent arrears, resulting in struggles to make mortgage payments and other expenses.
He says: “It really is a vicious circle, with very few winners. We see no end to the madness, with rental supply coming under more pressure as landlords try and exit the market.”
‘Crazy’ average rent hits all-time high of £1,243 a month
