RENTS ACROSS THE UK CONTINUE TO RISE SEPTEMBER HOMELET RENTAL INDEX REVEALS

  • Average rents across the UK rose by 2.1% in September when compared to the same month a year ago; the average monthly rent is now £927
  • Rents in London rose 1.9% in September, year-on-year, continuing the recovery that began last month after falls throughout the Spring and Summer; the average monthly rent in the capital now stands at £1,593
  • HomeLet’s September Rental Index reveals that rents rose in 11 out of the 12 regions of the UK covered by the research
About our data: HomeLet Rental Index provides the most comprehensive and up to date data on new tenancies in the UK. As part of referencing prospective tenants each year, HomeLet processes information including the rental amounts agreed, the number of tenants moving into the property, together with the employment status, income and age of all tenants. The trends reported within the HomeLet Rental Index are brand new tenancies which were arranged in the most recent period, giving the most relevant insight into changes in the Private Rented Sector. This is in contrast to many other rental indices which are based on all properties which are being managed, which may have had rental amounts agreed as long as two years ago.

Rents in the UK rose by an average of 2.1% during September, new data from HomeLet reveals, continuing the trend towards higher rents seen in recent months following a period in which rental price inflation was very low or even negative. The average rent agreed on a new tenancy signed last month was £927 according to the September HomeLet Rental Index, compared to £908 in the same month of last year.

September’s increase reflects higher rents agreed on tenancies in almost every area of the country, with only the South-East of England recording a negative rate of annual rental price inflation. The highest increases in rents were seen in Northern Ireland, where rental price inflation hit 4.3% in September, followed by the West Midlands (3.9%) and the East Midlands (3.7%).

Rents also rose in London, for the second month running after a four-month period in which annual rental price inflation had slipped into the red. Rents in the capital were 1.9% higher last month than in September 2016, with the average tenancy agreed in London last month costing £1,593. HomeLet’s regional data is available in more detail via an online interactive infographic.

Commenting on the research, HomeLet’s Chief Executive Officer, Martin Totty said: “While it is perhaps too early to conclude, this data signals the re-emergence of an upward trend in rents. It wouldn’t be surprising if landlords, seeing their own current and anticipated cost increases, seek to pass these costs on to tenants to preserve the returns from capital they have invested in residential property assets.”

“Landlords are facing a deluge of higher costs from new regulation, taxation changes on buy-to-let mortgages and the prospect of a near-term rise in interest rates. There’s also the added uncertainty over the fall-out from the government’s intention to ban letting agents from charging up-front fees to tenants.”

Martin Totty added: In a sector where demand for rental properties generally outstrips supply, most informed commentators suggest higher externally imposed costs on landlords will inevitably translate into higher rents to tenants. This may prove to be the start of that upward movement, especially if tenants are left competing for fewer rental properties because some landlords decide the returns from property investment are being eroded by factors beyond their control.”

Rental figures from the September 2017 HomeLet Rental Index

Region Average rent in September 2017 Average rent in August 2017 Average rent in September 2016 Monthly variation Annual variation
Northern Ireland £636 £634 £610 0.3% 4.3%
West Midlands £692 £693 £666 -0.1% 3.9%
East Midlands £620 £617 £598 0.5% 3.7%
South West £814 £838 £787 -2.9% 3.4%
Scotland £628 £629 £613 -0.2% 2.4%
Yorkshire & Humberside £630 £630 £616 0.0% 2.3%
North West £697 £703 £683 -0.9% 2.0%
North East £529 £538 £519 -1.7% 1.9%
Greater London £1,593 £1,609 £1,563 -1.0% 1.9%
Wales £617 £626 £606 -1.4% 1.8%
East of England £914 £926 £898 -1.3% 1.8%
South East £1,001 £1,028 £1,002 -2.6% -0.1%
UK £927 £939 £908 -1.3% 2.1%
UK excluding Greater London £766 £776 £749 -1.3% 2.3%
Notes:

 

Based on new tenancies in September 2017 Based on new tenancies in August 2017 Based on new tenancies in September 2016 Comparison of average rent in September 2017 and August 2017 Comparison of average rent in September 2017 and September 2016

 

EAN Content

Content shared by this account is either news shared free by third parties or sponsored (paid for) content from third parties. Please be advised that links to third party websites are not endorsed by Estate Agent Networking - Please do your own research before committing to any third party business promoted on our website.

You May Also Enjoy

Breaking News

Breaking Property News – 28/02/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Birchgrove and Hybr launch intergenerational living scheme A unique partnership will see students, key workers and retirees live together at new north London retirement development. Birchgrove, the UK’s leading provider of rented retirement homes, and Hybr, the UK’s leading student letting platform, today announce an industry-first…
Read More
Estate Agent Talk

Benefits Of Choosing Roger Bates Properties

Roger Bates Properties stands out as a prominent real estate agency that offers a myriad of benefits to individuals seeking to buy, sell, or invest in real estate. With a stellar reputation and a commitment to excellence, choosing Roger Bates Properties can prove to be a decision that yields numerous advantages. 1. Experience and Expertise…
Read More
Love or Hate Rightmove
Breaking News

Rightmove’s weekly mortgage tracker – 28/02/24

The average 5-year fixed mortgage rate is now 4.80%, up from 4.59% a year ago The average 2-year fixed mortgage rate is now 5.15%, up from 4.92% a year ago The average 85% LTV 5-year fixed mortgage rate is now 4.73%, up from 4.64% a year ago The average 60% LTV 5-year fixed mortgage rate is now 4.30%, up from 4.25% a year ago The average monthly mortgage payment on a…
Read More
Love or Hate Rightmove
Breaking News

Rightmove calls for stamp duty reform with only 4% of London homes exempt

Ahead of the Spring Budget on March 6th, the UK’s biggest property website Rightmove suggests three policy reforms that could help people moving home: A reform of stamp duty to consider regional property price variations: Only 4% of homes in London are stamp duty exempt for all buyers, compared to 71% in the North East Less than…
Read More
Breaking News

Breaking Property News – 27/02/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Alto reveals ‘next generation’ of Lettings Progression Alto, software for estate agents and part of Houseful, has revealed further information about the improvements being rolled out in 2024 to drive a step change in business efficiency for letting agents. Leading the way is a…
Read More
Home and Living

The Versatility of Parquet Flooring in Contemporary Homes

What comes into your mind when you hear about parquet flooring? Most probably Victorian era, historic estates, grand ballrooms, and grand mansions but what if I tell you that the parquet flooring has redefined itself with warmth, texture, and classic elegance? Parquet flooring in contemporary homes is a delight to the eyes because when you…
Read More