Tough times for tenants and landlords alike as further rent rises compound the ongoing cost of living crisis, according to new figures which show that average rents across the UK reached £1,159 PCM in September.
According to the latest data released by HomeLet, every area across the UK saw a month-on-month rise in rental costs during September – up by 1.4%, with London almost doubling this at 2.5% (or £47). The North-East saw the next largest monthly variance, with rents 2.4% higher than last month, up to £609 PCM
When excluding the capital, the average rental price now stands at £971 PCM – a 1% rise against the previous month.
Andy Halstead, HomeLet & Let Alliance Chief Executive Officer, said, “Recent weeks have seen the value of pound sterling dropping rapidly and concerns over rising mortgage rates. Combined with high energy prices and rising expenses across the board, it is fair to say that it is a worrying time for the private rental sector and the country as a whole.
“The rising cost of living is likely to see more tenants unable to afford their rent payments, and spiralling mortgage rates are making things harder for landlords.
“Several factors are combining to result in more and more landlords leaving the market, sadly depleting an already inadequate supply of rental properties to meet tenants’ demand. This will only result in further increases in the average rent price at a time when tenants can ill afford to take on extra expense, and landlords can ill afford to miss out on rent payments.
“A high cost of living resulting in tenants struggling to pay their rent does not suit anyone, as neither landlords nor tenants can approach the coming months with certainty about their immediate financial situation. We hope that the outlook improves in the coming weeks and months.”