The average rent being paid by tenants in the UK has reached £1,000 per
month for the first time, data reveals.
The research carried out by Homelet highlights that the average rent of
£1,007 is now a record high for the UK.
That’s an increase of 5.9% compared with last year, and 7% higher than the
figure for June 2019.
The firm says that every UK region has delivered an annual rent price
increase.
Homelet’s chief executive, Andy Halstead, said that part of the reason is
down to the coronavirus pandemic and the government taking steps to protect
tenants – but not enough to protect landlords.
‘Landlords being penalised with higher taxes’
He explained: “It is a continuation of what we have seen for many years,
with landlords being penalised with higher taxes and growing complexity in
obtaining possession of a property.
“Increased costs for landlords mean, in simple terms, increased costs for
tenants.
“Some may be shocked to see the average rental UK price go over the £1,000
mark yet supply and demand will continue driving rents up for the rest of
the year, and we will see more records being broken next year.”
He added that with landlords leaving the sector, and the sales market being
stimulated by the stamp duty holiday, means housing stock levels for
renting will fall.
The managing director of Accommodation for Students, Simon Thompson, said:
“The average monthly rent of £1,000 is a landmark figure for the UK’s
private rental sector.
“This will bring the affordability of rents into focus and there will
undoubtedly be calls for the government to step in and help landlords and
tenants.”
Landlords enjoy BTL mortgage boost
Meanwhile, one online BTL mortgage broker says that great deals for
landlords are on the rise.
The findings from Property Master reveal that landlords can access 41 buy
to let mortgages with a record low rate of 1.5% – or less.
They found that one BTL lender is offering a mortgage at 1%, though this is
for current customers.
The firm’s chief executive, Angus Stewart, said that the ending of the
stamp duty holiday in September and rents rising means many landlords will
be looking to boost their portfolio.
He said: “Lenders, unsurprisingly, in the BTL mortgage market will want a
slice of that business and the competition, in terms of the range of
products and prices on offer, is hotting up.”
However, Mr Stewart says that landlords should look beyond the headline
price because some of the best deals will have a loan to value (LTV) of 60%
or 65%.
