Average Rents Are Rising

June 24th 2021
By: Thomas Morris
Average Rents Are Rising

If you are a landlord looking for good news, rising average rents will be welcome. This is something we have witnessed across our branches, and there is also evidence to suggest average rents are rising across the country.

We appreciate many landlords will be pleased with this news, and if you are looking for guidance in the market, we can help.

There is consistency in the current rental market

The average rent figure in the UK reached £996 in April 2021, and this is their highest level since 2014. This figure was also the fifth month in a row where the average price increased; according to information provided by Homelet.

Some of the key findings from the report include:

  • When you exclude London, the average UK rent is £853

  • This average UK rent, excluding London, represents a rise of 0.7% on the monthly figures, and a rise of 6.2% on the annual figures

  • HomeLet monitor 12 regions, and nine showed a month-on-month rise in rental values

  • The North East experienced the largest increase of 2.4%

  • 11 of the 12 regions monitored by HomLet experienced a year-on-year increase in rental values

  • The South West saw the biggest rise, at 8.6%

  • Year-on-year rents in London feel by 5.3%, and this is the 11th drop in subsequent months

Know what is happening in the current rental market

Andy Halstead, HomeLet & Let Alliance Chief Executive Officer, said: "We’re continuing to see a sustained demand for let property; against a backdrop of reduced stock, with landlords facing increased costs and growing concerns about legislative changes. As we gradually ease from protective measures, the stark reality is that we’re fast approaching a summer where rental prices could accelerate at a rate never seen before.”

Andy Halstead continued by saying; “Almost a quarter of adults in the UK live in the private rented sector. The sector’s importance seems to be understated by those who don’t understand how vital it is. We all agree that the industry works best when balancing the needs of all parties, critically between landlords and their tenants. The common misconception is that increases in rents are solely driven by unscrupulous landlords trying to maximise profits. That is simply not true.”

Andy Halstead also said; “Landlords have been hit by a sustained raft of legislative changes, which mean that their costs to let property have had to increase. With the Tenant Fees Act as an example, costs are ultimately passed on to tenants through higher rents – the same group who should have benefitted most from that legislation. The ban on all tenant evictions and plans to abolish Section 21 may prompt some landlords to consider exiting the market when they’re able to, causing yet more strain on property supply. Letting property will continue to be an excellent long-term investment, but the pandemic has amplified some of the issues that both landlords and tenants are facing.”

Andy Halstead concluded by saying; “The reality is that once the furlough scheme ends, millions of people could potentially be facing unemployment at the same time as tackling the most expensive rental market on record. The country risks a deepening crisis if policy change aimed at restoring balance to the market is not urgently pursued.”

Alexander Siedes, CEO at tenant referencing business, Homeppl, adds: “With rents now at a record high of £996 across the UK, it has never been more important for landlords to ensure they are able to approve good tenants. Our data shows that 1 in 50 tenants attempt to commit fraud when trying to rent a property, and with high tenant demand driving up rents, agents need to ensure their referencing partners are helping them to identify who the best tenants are.”

If you would like to arrange a valuation of your rental accommodation, even in these challenging times we can provide this service. We can currently provide a range of safe property and lettings market services, aimed at helping you make an informed move.

If you are looking for help with any matter of the property or lettings market, it is best to speak to property professionals. You can book a sales or rental valuation appointment directly on line at a time and date of your choice by clicking here or alternatively click here for individual branch contact details.