Average new tenancy rents in nine out of the UK’s 12 regions increased last month, according to the latest rental index from Homelet.
The letting services firm says rents increased on average by 1.1% across the UK year-on-year, and that rises were highest in Northern Ireland where they increased 2.4% during July alone, and 5.4% year on year.
Tenants are now paying £10 more a month to rent a property than a year ago, or £925. Scotland had the next highest rents rises at 3.6% followed by the East Midlands at 3.2%.
But rents have continued dropping in London, the South East and North East, the index shows, by up to 1.7%. This follows national decreases in rent during April and May this year, and the rent reductions in London are the fourth in a row for the capital. A year ago rents in London were rising by 6.6%.
“It’s often been the case in recent times that rents have strengthened over the summer period,” says Martin Totty, CEO of Homelet (pictured, left).
“It’s a time when renters contemplate moving, demand increases, tenancy terms are set, and when the anniversary of the tenancy often occurs.
“This year, that ‘seasonal’ factor brings some relief for landlords, who’ve endured a gradual erosion in rent prices over many months.
“Whether the market has now found some equilibrium remains to be seen, but landlords at least will be grateful for even some short respite.”
Landlords more confident
Homelet also claims that landords now feel more confident about raising rents but that the rises reflect their awareness that many tenants are only just surviving financially, but that there are fewer properties for tenants to choose from.
“The government’s recent attempts via increased taxes to rein back the private rental market and persuade fewer landlords to buy properties to rent out appears to be working,” says Sheraz Dar, CEO of CreditLadder.co.uk (pictured, right).
“A growing number of tenants are now chasing fewer properties to let, helping push up rents as the Homelet figures show.
“But despite increasing rents in many areas of the UK, our data shows that an increasing proportion of tenants are looking for ways to help themselves get on the property ladder despite the hurdles they need to clear.”