Average rent across UK hits record high for third month in a row

The lettings market continues to boom, with HomeLet’s latest index showing average UK rents at a record high for the third month in succession.

The average rent is now £1,053 pcm, which is up 6.9 per cent on the same time last year, and up 2.3 per cent on August’s figure. 

Wales has seen the highest annual rise - up 12.8 per cent in a year, to £723 pcm.

And there are signs of recovery in London, which appears to have stemmed the falls seen during the peak of the pandemic - annual rents in the capital are up 3.6 per cent to £1,713 pcm.

Every region of the UK saw an annual price rise and only Northern Ireland saw a monthly dip - the rent there remains flat in September at an average of £704 pcm.

Rob Wishart, head of business intelligence at HomeLet & Let Alliance, says: “Typically, rents for new tenancies will rise in line with the rate of inflation, but that’s not been the case in the past few months. 

“The demand for housing and certain property types is outstripping supply in many areas, causing upward pressure on rental prices. We can expect the increase in rents to continue for the foreseeable future, with many regions now seeing unprecedented demand for housing stock and landlords.

“In the capital, we have seen yet another price rise, and we may see London accelerate at a faster rate than the rest of the country in the coming months, as international travel ramps up and rates of working from home move in the opposite direction.

“On the whole, the private rented market has been exceptionally resilient throughout the pandemic, so it’s no surprise that the level of investment is increasing through sectors like Build To Rent. Consistent yields over the long term coupled with capital appreciation have only bolstered confidence in the industry even in the face of the disruption we’ve had over the past 18 months.

“There’s no doubt that further challenges are ahead in the short term; with the end of the furlough scheme, which still supports around 2m people, we expect claims on rent protection products to increase further. Whilst the pandemic has accelerated the demand for rent protection products, it’s become integral to many letting agents management propositions and has supported the confidence we’re seeing in the sector.”