Rents rise further as BTL landlords flee the market and stock falls

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.”

 

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3 Comments

  1. Will2

    The Tenant Fees Act had an impact but just wait until the abolition of S21 takes place and the reduction of control of landlord’s properties, landlords will be leaving, add the EPC requirements and bingo you have the perfect storm.  One has to remember that many Landlords do not closely follow the legislation and leave it to their managing agents. Managing agents do not regularly educate their clients, after all why would they advise them of changes which could reduce control of their investments. But it will eventually dawn on landlords how much they have been screwed by the conservative Government. Constant banging on about Rent Controls and introduction of such in parts of the UK will also have an impact on confidence of investors, or perhaps lack of!.  Even politicians can’t be that stupid can they?  Well yes they can and the anti landlord and landlord bashing so called charities have ignited the fire. For politicians they think they are buying votes as Thatcher did very effectively with the Right to Buy in the 1980’s at massive discounts using public funds to buy those votes (in the discounts). So tenants can thank Shelter and the likes for making it more difficult to rent and the significant rise in rents. Moreover the reduction in investment by private landlords means scarcity of supply and landlords will becomre even more selective as to who they will rent to; particularly as getting rid of rogue tenants becomes harder and more expensive.   Well done!

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    1. HJBaker

      This government obviously hasn’t got a clue about how to manage housing in this country but neither has any other party. Sadiq Khan is calling for rent controls and the Labour Party is saying the same along with other crazies like right to buy (at reduced cost) of private rented homes. The Greens aren’t much better. Nobody has a clue except us landlords and nobody is asking us! Our trade bodies are useless as well.

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  2. JMK

    LOL!  Well done Shelter. Well done Generation Rent.  Well done Acorn and all the other idiots.  Which part of supply and demand don’t you understand???

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