Rents across UK Continue To Rise
Rents being paid across the UK in the private rental sector continued to rise in October, data reveals.
The index published by HomeLet highlights that the average rent now being paid per calendar month is £953. That's a 2.7% rise, year-on-year.
The average rent when London rents are excluded, is £788 per month - a rise of 2.6% over the last 12 months.
However, in London, the average rent is now £1,665 per month, a rise of 2.8% over the same period.
HomeLet says that all of the 12 regions they monitor have seen rents rise between October last year and this year.
Of those regions, five racked-up an annual increase of more than 3%, with landlords in the North East, the North West, Yorkshire, the South Western and in Scotland benefiting. The largest year-on-year rise was in the North East with a 4.5% increase.
A spokesman for HomeLet said: "Rental growth for October at 2.5% appears to be above, marginally, the rate of inflation which was 1.5% in the month.
"Our data also shows that rents in the North East are growing quicker than any other region, while rent growth in London has decreased by 1.7% in the last three months."
Rents in London will continue rising
The findings have been echoed by Savills who are predicting that rents in London will continue rising over the next five years ahead of wage inflation.
They also say that rental demand will continue to increase because of affordability pressures among potential homebuyers.
The real estate firm says that the average rent in the capital will rise by 18.8% over the next five years, with wages set to rise by 15.6%.
In their report, Savills says: "The pressure on private landlords will limit rental property supply, particularly in lower yielding and high-value markets, but the proportion of household income that a tenant can afford to pay in rent will be the overriding constraint for rental growth."
The firm is also predicting that London's rent rises will outperform other regions in the years to come as tax changes 'increasingly push landlords from the rental sector'.
Tenants look set to rent for the rest of their lives
Meanwhile, a study has revealed that around half of those who are renting in the UK could be doing so for the rest of their lives.
According to research from Fidelity International, 45% of tenants say they will never own a home.
Also, for those aged between 34 and 54, 41% say there will never own a property.
Over the last 10 years, the proportion of UK home ownership has dropped from 73% to 63%.