Average rental prices rise 2.1% in the space of a year
The average price of renting a home in the UK has risen markedly in the last 12 months, according to the latest property market index.
Data released by HomeLet in its September publication shows that the average tenant in the UK's private rented sector is now having to spend £927 per calendar month to get themselves a property. It said this marks an impressive 2.1 per cent rise when compared to the same month a year ago.
It's a similar story in the capital, where the price of renting a home has climbed to £1,593 per calendar month. This was a 1.9 per cent rise when compared to September 2016. The good news for London is that this is a continuation of the trend reversal seen last month.
London had experienced four consecutive months of rental prices falling earlier in the year, but in both August and September, the average price paid by tenants has climbed compared to 2016. This indicates that the capital could well be seeing the stability it has craved in 2017 at long last.
Overall, HomeLet said, over the past year, the average rental price paid by tenants has climbed in 11 of the 12 regions, with only the south-east having seen a drop compared to 2016 (0.1 per cent).
HomeLet’s chief executive officer Martin Totty said this latest data shows the market returning to a period of rises, and speculated that additional costs for landlords could be driving this change.
"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," he said, adding that landlords nationwide have had to contend with a "deluge of higher costs" in recent times.