Rents across much of the UK have hit a record high as demand from renters continues to heavily outweigh supply, new data shows.
The average rent in the UK reached another record high of £1,103 per calendar month (pcm) in May, up 1% on the previous month, as the supply of homes available to rent in the PRS continues to fall, owed in part to a surge in buy-to-let landlords exiting the market.
When London is excluded the average rent in the UK is now £928pcm, up 9% on last month.
According to the data, rents in the capital have risen to a new average of £1,832pcm – an increase of 6% month-on-month.
Northern Ireland saw the largest monthly variance, with rents 7% higher on the previous month.
Mike Dawson, a director at HomeLet, said: “With continued universal pressure on households, we’re seeing tenants stay in properties for more extended periods. However, as summer approaches, we expect tenants to move at a much higher rate which means average rents for new tenancy agreements will continue on an upward trajectory.
“The rental market plays a critical role in satisfying the UK’s housing needs, and the long-awaited Renters’ Reform Bill needs to strike the right balance by protecting both tenants and landlords. With many landlords already exiting the market, the government’s commitment to legislation will provide the biggest change to rental law in a generation and shouldn’t risk marginalising landlords even further.”
Dawson added: “Whilst managing agents can provide a vital service to landlords as the market becomes more complex, there’s a genuine risk that?we will continue?to see a decline in the number of landlords in the UK. Ultimately, tenants will foot the bill if the level of stock decreases and demand grows, as we saw with the 2019 Tenant Fees Act.”