Homelet: Average Rents Rises To New Record High

The average rents in the UK have strike another record high of £1,061, up 7.5% on the similar time last year, and up 0.8% from the preceding month’s figure, for September 2021 according to the HomeLet rental index.

London saw an annual raise of 6.4%, taking the average to £1,752 per month — this hop of 2.3% was the biggest in the country.

Apart from London, the average UK rent charge is up to £891 per month, a 7.6% year-on-year increase.

The South West saw a considerable monthly drop-in rent price, in the meantime, with the average now at £971, downward 3.5% compared to last month.

Elsewhere, every region has seen a year-on-year price ascend, with Wales (12.9%) and Scotland (10.8%) seeing the most considerable increases.

Head of marketing at HomeLet & Let Alliance, Mathew Carter, said: “UK rents rise by 9.7% on pre-pandemic levels (2019), but most of the increases have happened this year.

At first, we saw rents outside the London rush whilst prices in the capital dipped, but we’re now seeing rents in London rise much more speedily, fuelling the record rental levels we see across the country.

“The rental cost in line with cost rises and salary escalation; that’s somewhat we’ve sustained to determine.

“Although record rents, tenants moving home spend a comparable percentage of their income on their monthly rent. “There was a customary household spend of 29.6% of their gross income on rent in September, compared with 30.9% in September 2019 which was before the pandemic.

“The similar primary laws of economics are followed by Housing as other goods that consumers require.

“We’re at a position where there are a few areas with remarkably high demand which is of concern.

“The lettings market and landlords faced a continuous push of modification and legislation; the government should carefully think about how any future policy might shock the 4.5 million households in the private rented sector.

“There shouldn’t be a drawback of an industry that governments push on homeownership that plays a vital role in UK housing.”

Reference Source: Mortgage Introducer

https://www.compareclosing.com/mortgagenews/homelet-average-rents-rises-to-new-record-high/

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