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’.
