Rents in the UK are continuing to rise in almost every region including in London where during September they are 3% higher than a year ago, the latest Homelet rental index reveals.
The average rent in the capital is now £1,640 per property a month, twice the price of the UK average of £780, excluding London.
Homelet says rents are rising across the UK by 1.7% although this is lower than the UK’s current inflation rate of 2.6%, and 0.4% lower than average rents during August.
Rents are rising annually fastest in Scotland at 5.6% following by Northern Ireland at 4.4%, the South East at 4.2% and Greater London at 3%.
“Rental prices have for the large part continued their upward trend although this muted rate of growth will at least be welcomed by the nation’s tenants,” says Adam Male, Director of Lettings at Urban.co.uk (left).
He says the rental market faces more problems in the coming months as the tenant fees ban, Brexit and the government’s determination to ‘relevel’ the playing field in favour of the tenant at all costs creates turbulence in the market.
“We’ve already seen a mass migration of landlords leaving the buy-to-let sector and if this continues, a drastic reduction in rental stock will lead to a sharp uplift in rents,” says Adam.
“Couple this with the potential, additional costs passed on by letting agents through no default fees in order to sidestep a fee ban, and the rental sector looks set to become even more unaffordable.”