(qlmbusinessnews.com Mon, 18th Sept, 2023) London, UK —
The cost of renting a home in the UK has surged by 12% over the past year, marking the sharpest increase since data collection began in 2014, according to estate agency Hamptons.
The research revealed that the average monthly rent for a newly-let property now stands at £1,304. This increase in the past 12 months has outstripped the cumulative rise seen in the four years leading up to 2019.
Several factors have contributed to this steep rise in rental costs. Landlords are grappling with elevated mortgage rates, while tenant demand is steadily climbing. The supply-demand imbalance, with fewer available rental properties in many regions, has resulted in higher rental expenses.
Official figures from the previous month, encompassing both new and existing lettings, showed that rental costs in the UK were at their highest level since the commencement of comparable records.
Proposed legislation currently making its way through Parliament aims to prevent tenants from being evicted without a valid reason. Landlords contend that this legislation has prompted some of them to exit the sector. Meanwhile, heightened competition among tenants for a limited supply of rental properties is pushing rents upwards.
Hamptons' research, which covers 90,000 homes let and managed by the Countrywide Group's estate and lettings agents each year, accounts for location and property type, focusing on achieved rather than advertised rents. The data reveals that the UK's average monthly rent surpassed £1,300 in August, achieving this milestone less than a year after crossing the £1,200 mark.
Aneisha Beveridge, Head of Research at Hamptons, commented, “Each passing month has ushered in a new rental market record. Rents have risen more in the last 12 months than they did between 2015 and 2019. While the current pace of rental growth is unsustainable long term, many mortgaged landlords are being squeezed just as tightly as tenants.”
Sluggish activity in the broader property market, due to higher mortgage rates and economic conditions, is also playing a role. Rightmove, a property portal, disclosed that more than a third (36%) of properties listed for sale have undergone at least one price reduction to attract buyers, the highest figure since January 2011. Although typical asking prices in September were 0.4% lower than a year ago, they saw a marginal increase compared to the previous month.
To improve their chances of securing a rental property, agents advise tenants to begin their search well in advance of their current tenancy ending, sign up with multiple agents, and have essential documents such as payslips, a job reference, and a previous landlord reference readily available. Establishing a relationship with local agents while staying within budget and offering upfront payment can also enhance prospects. Some agents provide sneak peeks of properties on social media before listing them, so tenants are encouraged to explore these opportunities. Further tips and information on renting rights are available for renters.
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