The latest figures released HomeLet has revealed that, as the UK heads out of lockdown, average rents in the private across the UK have hit a record high of £996 per month.

According to the HomeLet Rental Index, this is the fifth month in a row that the average price has increased.

But rents in London continue to fall year-on-year, showing a 5.3% drop between April 2020 and April 2021 – the 11^th decrease in annual variance in subsequent months.

When London is excluded, the average rent in the UK is now £853 a month, showing an increase of 0.7% on last month, and an increase of 6.2% on last year.

Nine of the twelve regions monitored by HomeLet showed a month-on-month increase in rental values between March 2021 and April 2021, with the North East seeing the largest increase of 2.4%.

Overall, 11 of the 12 regions monitored by HomeLet showed a year-on-year increase in rental values between April 2020 and April 2021, with the South West seeing the largest increase at 8.6%.

Andy Halstead, HomeLet & Let Alliance chief executive officer, commented: “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.

“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.

“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.

“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.”

 Summary by Region for Average Agreed Rental Values in the UK 

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