Rent rises make market ‘unstable for tenants and landlords alike’

The average rental price in the UK has reached £1,229 per month, according to the latest HomeLet rental index.

The figure represents a 1.3% increase from the previous month, with Andy Halstead, HomeLet & Let Alliance chief executive officer, commenting that the rise makes the private rental market “more unstable for tenants and landlords alike”.

Greater London stands out with a significant monthly jump of 1.9%, reaching an all-time high of £2,077 per month. Excluding London, the average rental price in the UK is £1,027, showing a 1.1% increase month-on-month.

However, Scotland has experienced the highest monthly rental increase among all regions, with average prices rising by 5.5%. This surge has led to the highest-ever average rental price recorded in Scotland. 

At the other end of the scale, the North-East has seen a further 1.1% decrease from the previous month, resulting in an average rental price of £625 per month.

Halstead commented: “With another increase and UK prices now averaging at £1,229, it is clear that there is a continued risk for tenants and landlords alike, with a very real likelihood that tenants up and down the country might struggle with paying their rent. 

“Scotland in particular has seen a soar in the rental market, with a 5.5% monthly swing showcasing an all-time high average rental price of £940. 

“The capital shows no signs of slowing down either, with yet another record price recorded in Greater London. It is not so long ago that we were talking about London breaking the £2,000 PCM barrier for the very first time – a big leap to £2,077 PCM is a sign of how a lack of available rental properties is pushing prices up for tenants and making the private rental market more unstable for tenants and landlords alike.”

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3 Comments

  1. MrManyUnits

    5.5% monthly increases in Scotland.

    Well I wonder what caused this, surely the feckless Government were told this would happen.

    Sadly rent controls to expend this happening in the rest of the UK will be coming soon as directed by the likes of Shelter.

    You just couldn’t make it up how stupid these Politicians and advisors are.

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  2. AcornsRNuts

    Now Gove and his squeeze, Polly from Shelter, want to prevent properties being advertised as no children and professionals only. It is as if they want more landlords to sell up.

    Would be tenants would only waste their time viewing properties they cannot afford or are not suitable for children.

    At least Gove can look forward to a seat in the House of Lords when he loses his seat.

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  3. Peter Merrick

    It cannot be emphasized strongly enough that the people who make the policies are NOT stupid, they are just following an agenda, which currently happens to be deeply hostile to the PRS. There is also a bias towards short term interests and populism, aka landlord-bashing to deflect blame for a general lack of available accommodation.

    It is the people on the ground, i.e. landlords and tenants, that have to deal with the consequences, like excessive costs and lack of availability, and prepare accordingly. Landlords must either sell up, put up rents, pay down mortgages, or whatever other defensive measures they need to take. Tenants have to live in lesser accommodation than they would have done previously or share accommodation or live at home instead.

    Ultimately, the landlords that survive could end up the winners, as having a scarce commodity that is in demand necessarily puts you in the driving seat. Government view is that this should be led by the corporate build to rent sector.

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