Average rents have increased across the UK as a whole but with the uncertainty over the economy this trend may not continue.
In the lettings market index by HomeLet, it shows the average UK rent is £922, which is a 2.9% increase on the previous year. If you remove London from the figures the average is £847, an increase of 6.8%.
Rents in London are actually continuing to fall, seeing a 3.9% decline in the past year. Some of that is the effect of London tenants heading to the countryside. It’s a similar trend nationwide but not to the same level as seen in London.
HomeLet chief executive Andy Halstead says: "We're seeing the value of the private rented sector's responsiveness and the crucial role it plays in supporting the changing needs for people across the UK.
“The data continues to show that demand remains exceptionally high in many areas. The needs of tenants have shifted throughout the pandemic, creating upward pressure on locations that offer more space, both inside and outside the property.”
“Whilst rents are increasing, the expectation is that unemployment will increase further in the summer, undoubtedly leading to some tenants being unable to pay their rent. There are still millions of people on the government's furlough schemes, and many will need to move home. That's why I think it's essential that we continue to carry out checks on people who are on furlough whilst still offering rent protection for eligible tenants.”
“Whilst the broader economic outlook is uncertain, the private rented sector is exceptionally resilient. We're now seeing the optimism of the vaccine rollout, but safety must remain the priority. The industry is working more remotely, and things like online viewings will continue to play an essential part in the tenancy process.”
It’s a similar story in Manchester, which is included in the North West figures. The average rent is £788, which is a 6.8% increase over the previous year.
The sustainability of rental prices will be tested in the coming months as furlough comes to an end amid wider economic uncertainty.
Another one to keep an eye on.
If you have a large property or HMO, but with all the uncertainty in the market, eviction problems, potential licensing issues and ever-increasing regulations, you are considering your options, don’t hesitate to give us a call. We specialise in these types of properties and can help you to evaluate your options.
Call 0161 850 5588 or email info@armisteadproperty.co.uk
Thanks for reading
Peter Armistead
Founder, Armistead Property
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