Average UK rental price now topping £1,000 PCM

 
Average UK rental price now topping £1,000 PCM [Photo: TanawatPontchour via iStock]

The average paid by tenants in the UK is on the rise again, as demand continues and people still look for places to rent in the months after Brexit, a new report has shown. 

There had been worries around the referendum that the vote could potentially mean fewer people looking for new tenancies nationwide, but according to new findings, this has not been the case, with the average rental price still climbing. 

According to the latest Landbay rental index, the average price for a one-bedroom property in the UK as a whole now stands at more than £1,000 per month, with the price of a new tenancy having climbed by 0.1 per cent monthly when compared to July this year, and more than 1.7 per cent when compared to the same time a year ago.

However, it seems that London is still the market putting the largest amount of upward pressure on rental prices at the moment. When the capital is taken out of the equation, Landbay reports, the average rental price nationwide for a one-bedroom property stands at just £588 per calendar month. 

However, the good news for tenants, and in particular young professionals, is that prices for one bedroom rented properties in the capital are actually starting to come down, albeit slowly. 

Demand may be one pressure that keeps prices heading upwards, but when some tenants are facing having to pay as much as 74 per cent of their income on rent alone, rent can reach an affordability ceiling, which can then leave tenants seeing a falling price for a few months at least. 

"The buy-to-let market is a vital part of the UK’s housing mix, and rental properties have become an important stepping stone for first time buyers saving up for their own home,’ said John Goodall, chief executive officer of Landbay.

"However, with a rapidly growing population and a chronic undersupply of new houses, property prices are growing even further out of reach for aspiring home owners. With rents climbing too, even in the face of Brexit uncertainty, tenants saving up for a house face a triple challenge in trying to catch up with the pace of house price inflation, with more and more of their income spent on rent, and record low interest rates limiting their ability to save money," he added.