Rents up nearly 1% year-on-year
In August rents in the UK rose by 0.9% year-on-year with the average monthly rent now at £947 a month, the HomeLet’s Rental Index has found.
Rents in London increased by 1.4% in August this year compared to August 2017 and the average monthly rent in the capital now stands at £1,632 a month. When London is excluded, the average UK rental value was £786 in August 2018, 1.3% year-on-year.
Adam Male, director of lettings at Urban.co.uk, said: “Rental prices are now at their highest point in the last two years and while the rate of rental growth has slowed, this will do little to encourage those struggling to make ends meet or indeed those saving for a mortgage deposit to exit the sector.
“This continued increase is a direct consequence of ill thought out government policy, as an exodus of buy-to-let landlords has led to an inadvertent chokehold on the level of stock available in the market.
“In addition, many landlords are having to increase their rent in order to compensate for these consistent financial impediments.
“While the London sales market has come off the boil post Brexit, rents have increased across almost all London boroughs with central London remaining a hotbed for tenant demand for those that work in the city.
“That said, eight out of 12 UK regions have seen rents maintain their upward curve and so it highlights that the issue of rental affordability and the persecution of the nation’s landlords is far from a London-centric issue.”
When London is excluded, the average rental value was £786 in August 2018, up 1.3% on last year. The UK average rental value increased by 1.1% between July and August.
In August, average rental values in London (£1,632) were 72.3% higher than the UK (£947).
When London is excluded the average rent in the UK was £786 in August, meanwhile average rents in London (£1,632) were 107.6% higher than the rest of the UK.