UK rents reach record high

The average rent that tenants in the UK are paying has reached a record high of £992.

The figure comes from HomeLet who say that is the highest figure since 2014 when their index was launched.

This new high is also the fourth consecutive monthly increase.

However, the average rent when London is excluded is £847. That is a 1% rise on the previous month's figure.

HomeLet says that nine of the 12 regions they monitor have seen rent rises between February and March.

The largest increase was seen in Northern Ireland where landlords saw rents rise by 2.9%.

London rents are still falling

Rents in London are still falling and between March 2020 and March this year, they fell by 5.2%.

HomeLet’s chief executive, Andy Halstead, said, "The narrative that letting agents and landlords are pushing up rents is not true.

"Professional agents and landlords will welcome initiatives that improve standards in the sector but policies that disincentivise property investment will drive rents up for tenants."

The managing director of Accommodation for Students, Simon Thompson, said: "The private rented sector plays a crucial role in delivering quality homes for people to rent and increasing demand and falling stock is pushing rents up.

"We also need government policy to help support the private sector - especially for those landlords who are struggling with rent arrears that have built up over the Covid-19 lockdown."

Mr Halstead also said that rents will rise over the summer to 'record levels' as demand continues to grow.

Large numbers of overseas landlords invest in the UK

Meanwhile, it has been revealed that large numbers of overseas landlords are continuing to invest in UK property.

According to figures published by Ludlowthompson, the UK has seen a 19% rise in overseas landlords investing since the EU referendum.

This has now reached a five-year high, despite the Covid-19 pandemic, Brexit and tax changes that have affected landlords.

One reason that overseas landlords are looking to the UK is because of the favourable exchange rate. The firm's chairman Stephen Ludlow said: "Investment from overseas landlords into buy to let UK properties has ensured a steady stream of capital into the sector, and it kept up the quality of rental stock than would have been the case."

Mr Thompson said the reintroduction of the 2% stamp duty surcharge for most investors buying property is 'unlikely to be a deterrent'.