Rents at all time high, according to latest HomeLet index

Rents have reached an all time high across the UK according to HomeLet.

Its latest index says the average rent in the country is now £970, up by 2.4 per cent on a year ago.

When London is excluded, the figure is £802 - that’s a 2.0 per cent rise. 

In the capital rents are typically now £1,689 - 3.5 per cent higher than a year ago.

Commenting on the data, chief executive of HomeLet Martin Totty, says: “In times of uncertainty people tend to defer major purchases - opting to wait for the turbulent times to pass - and there is nothing more ‘major’ than buying property. 

“In the case of Brexit – deal or no-deal – it’s still unclear how long the uncertainty will continue, which could spell positive news for private landlords as more people choose to rent rather than risk entering the property market at the wrong point in the cycle.

He says that as well as the long-term trend of rental growth and high demand underpinning the lettings sector, recent months have produced growth towards the upper end of the inflation range observed over the past few years. 

“This is perhaps no surprise, at least not to most informed participants in the sector. Indeed, many had predicted this as the inevitable consequence of banning letting agents and landlords from charging up-front fees to tenants. Faced with higher expenses, higher taxation and greater regulation, savvy property owners were always likely to seek to recover these increased charges” says Totty.

The trends reported within the HomeLet Rental Index are for brand new tenancies arranged in August.

Here are the average rents (pcm) by region for the end of August according to HomeLet:

- Greater London: £1,689

- South East: £1,064

- East of England: £930

- South West: £852

- North West: £741

- West Midlands: £720

- Scotland: £671

- Northern Ireland: £664

- Yorkshire and Humberside: £655

- East Midlands: £655

- Wales: £636

- North East: £531