Rents performing strongly but sector needs backing – HomeLet

10 May 2021 | Renting

Rents performing strongly but sector needs backing - HomeLet

The latest HomeLet market index shows that the average rent in the UK is now at a record high of £996 pcm after five successive monthly rises.

When London is excluded the average rent in the UK is now £853, up 0.7 per cent on last month, and up 6.2 per cent on last year.

Nine of the 12 regions monitored by HomeLet showed a month-on-month increase between March and April 2021, with the North East the largest at 2.4 per cent. 

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Eleven of the 12 regions monitored by HomeLet showed a year-on-year increase with the South West up most, 8.6 per cent. 

However, rents in London continue to fall, showing a 5.3 per cent annual drop – it’s the 11th month in a row that the capital’s annual figure has fallen.

Meanwhile Andy Halstead – HomeLet & Let Alliance chief executive – has issued a warning to government to help the sector.

He says that with almost a quarter of adults in the UK now privately renting, the sector’s importance is understated by those who don’t understand how vital it is. 

“We all agree that the industry works best when balancing the needs of all parties, critically between landlords and their tenants. The common misconception is that increases in rents are solely driven by unscrupulous landlords trying to maximise profits. That is simply not true” insists Halstead.

“Landlords have been hit by a sustained raft of legislative changes, which mean that their costs to let property have had to increase. With the Tenant Fees Act as an example, costs are ultimately passed on to tenants through higher rents – the same group who should have benefitted most from that legislation.     

“The ban on all tenant evictions and plans to abolish Section 21 may prompt some landlords to consider exiting the market when they’re able to, causing yet more strain on property supply.”

This post has originally been featured in Letting Agent Today.