Strong tenant demand sees average UK monthly rent hit £987

Latest figures released from Homelet – The UK’s largest tenant referencing and specialist lettings insurance company – reveal that, for landlords at least, rents are begining to move in the right direction with the third successive monthly rise.

According to the data, the average rent in the UK now stands at £987, up by 0.2% on last month and up 4% from June where it stood at £951. When London is excluded, the average rent in the UK is now £828 – up by 3.9% on last year.

Ten of the twelve regions monitored by HomeLet showed an increase in rental values between September 2019 and September 2020, with the South West seeing an increase of 6.6%.

However, rents in London are down YOY, showing a 2.8% fall between September 2019 and September 2020, the fourth decrease in annual variance in subsequent months. Northern Ireland also shows a yearly decrease, with a 2.4% fall between September 2019 and September 2020.

Seven of the twelve regions monitored showed an increase in rental values between August 2020 and September 2020, with the North East seeing the biggest increase of 2.2%. In September 2020, the average rental value in London of £1,646 was 99% higher than the rest of the UK, excluding London (£828).

Martin Totty, chief executive at HomeLet, comments:

“Whilst it’s undoubtedly the case many landlords are being supportive of their tenants and agreeing on temporary reductions or deferrals, it will be encouraging for them to see rents agreed on new tenancies, in almost all parts of the country, are continuing to hold up and generally edge forward.

“This is likely because tenant demand remains strong whilst supply may be a little more constrained if some landlords are selling into a stronger sales market, even if that could be a short term phenomenon. It also doesn`t help tenants much if, for them, the prospect of securing first-time mortgage finance remains as elusive as ever.

“So, those landlords committed to the sector for the long term and having shown their willingness to confront the multiple headwinds of taxation change; new regulatory requirements; and, in certain circumstances, longer notice periods to gain possession of their properties, may still be rewarded for their flexibility and their perseverance with reasonable returns on their investment risk.”

Article courtesy of Property Reporter.