Rental growth accelerated in May to reach a new record high according to Connells-owned lettings agency Hamptons.
Last month the average cost of a newly let rental home in Britain rose to £1,054 per calendar month, up 7.1 per cent on the same time last year.
This marked the fastest rate of growth since the agency’s records began in 2013, surpassing the previous peak of 7.0 per cent in December 2014.
The average rental home now costs £43 or 4.1 per cent more than it did in May 2019 – in May 2020, the market was effectively closed because of lockdown.
Four out of the eight regions recorded record rental growth last month – the South East, South West, Midlands and Scotland.
Rents in the South East and South West hit double digits for the second consecutive month, rising 13.0 and 11.5 per cent respectively.
Meanwhile London continued to be the only region where rents fell – they are down 0.5 per cent year-on-year.
Rents rose faster on larger properties. In May the average rent on a four-bed property in Britain increased to £1,805 pcm, up 9.5 per cent. Meanwhile rents on one-bedroom homes remained flat at 0.4 per cent.
Yesterday Hamptons said that it was now cheaper to rent a home than to buy one for the first time since late 2014.
Its analysis shows that in May the average tenant in Britain spent £71 per month less in rent than if they were servicing the repayments on a 90 per cent loan-to-value mortgage on the same home.
You can see details of that story, here.
This post has originally been featured in Letting Agent Today.