UK rents saw a further rise of 1.3% in June, reaching a new record high of £1,127 PCM, with prices set to continue rising and landlords expressing concern that they are being pushed out of the market.
The latest data released by HomeLet has revealed that average rents in the capital have surged to a new average of £1,868 PCM. When London is excluded, the average rent in the UK is now £948 PCM, up 1.3% from last month
Scotland saw the largest monthly variance, with rents 3.4% higher than last month
The trends reported within the HomeLet Rental Index are from data on actual achieved rental values for just-agreed tenancies arranged in the most recent period – providing an in-depth insight into the lettings market and what’s happening right now across the UK.
“One of the main factors leading to rising rent prices is a lack of supply on the market to match demand. This problem could worsen if landlords continue to leave the market, leaving a rapidly shrinking supply of available rental properties. The issue is reflected by the overall findings from our recent Landlord Survey, where 18% of all landlords that we spoke to said that they expect to reduce their portfolio or leave the sector entirely in the near future – this figure rises higher to 22% for landlords based in London.
“The same survey revealed that four out of five renters (78%) are worried about how they will pay their rent. A market too volatile for landlords to rely on receiving rents due, and properties too expensive for renters to cope with, is clearly unsustainable.”