Outside of London, rents are rocketing to record levels with most regions
seeing big increases in rents.
And one survey reveals that tenants are returning to big cities.
News that rents are rising comes from Homelet who say that
rents are growing by 6.2% outside of the capital.
In London, however, rents have fallen by -4.7% – the highest rate they have
recorded.
The average rent now being paid in the UK has risen by 3% year-on-year to
reach £984.
With London’s rents excluded, the average rent for the UK is £840.
The rent protection provider says that 10 of the 12 regions they monitor
have seen rent rises.
Highest growth in rent
The highest growth in rent was seen by landlords in the East Midlands where
they rose by 8.1%.
Homelet’s Andy Halstead said: “Landlords are charging more to cover
essential costs, including their letting agent’s services.
“This pushes increased rents onto tenants.”
He highlighted that it is tenants who suffer from higher rents and they are
meant to be protected from the Tenant Fees Act – though the government was
warned over about ‘unintended consequences’ of the legislation.
Mr Halstead added: “The Covid situation is making the trend more pronounced
and there’s high demand in areas where stock levels are flat or have
declined because tenants are wanting to rent for longer and there are fewer
landlords investing in property.”
Landlords face the prospect of increasing rent arrears
He pointed out that landlords also face the prospect of increasing rent
arrears, while the length of void periods will also grow.
The managing director of Accommodation for Students, Simon
Thompson, said: “The private rented sector is crucial to housing supply in
the UK and tenants should have quality properties with reasonable rents.
“The government should be listening to what landlords and letting agents
are saying about the need for a fair and balanced system for everyone’s
rights, including tenants.”
It has also been revealed that London’s landlords have been boosted by the
return of tenants to the capital.
According to Rightmove, the number of tenant enquiries for
Zones 1 and 2 have risen significantly in recent months.
Popular areas for tenant enquiries
They say the most popular areas for tenant enquiries are Battersea, where
enquiries have risen by 111% over the past year, and Nine Elms, when tenant
enquiries have risen by 126%.
This follows news that after the pandemic lockdown was introduced, lots of
tenants left cities, including London, for larger properties in rural
areas.
The director of property data at Rightmove, Tim Bannister, said: “With the
prospect of some kind of normality returning on the horizon, it appears
that the capital’s renters are looking to return to London and take
advantage of lower rents.”
