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This August brings with it the label of all-time high rental prices, according to the latest data from HomeLet.
The headlines from August 2019’s HomeLet Rental Index are:
Commenting on the data, chief executive of HomeLet, Martin Totty, said: “In times of uncertainty people tend to defer major purchases - opting to wait for the turbulent times to pass - and there is nothing more ‘major’ than buying property. In the case of Brexit – deal or no-deal – it is still unclear how long the uncertainty will continue, which could spell positive news for private landlords as more people choose to rent rather than risk entering the property market at the wrong point in the cycle.
“Recently released annual results from a number of major quoted property agents point to a resilient private rented sector in contrast to a subdued sales market. With a still unclear outcome of the current political impasse and the increasing prospect of a further extended delay in the UK exiting the European Union, the contrasting fortunes of the two main segments of the housing market seem likely to continue for some time.
“As well as the long-term trend underpinning the private rented sector, recent months have produced growth towards the upper end of the inflation range observed over the past few years. This is perhaps no surprise, at least not to most informed participants in the sector. Indeed, many had predicted this as the inevitable consequence of banning letting agents and landlords from charging up-front fees to tenants. Faced with higher expenses, higher taxation and greater regulation, savvy property owners were always likely to seek to recover these increased charges.
“Thanks to strong demand for rental stock, continued wage growth and a near all-time high level of employment, landlords hold some pricing power and seemingly are now beginning to exercise it. Property professionals pointed out at the time, the fees ban could result in tenants actually paying more, albeit in a different way and over a period of time. Perhaps after all that was an acceptable outcome for all sides. Intended or unintended, it does start to appear to be the consequence.”
HomeLet is the UK’s largest tenant referencing firm, and the HomeLet Rental Index provides the most comprehensive and up-to-date data on rental values in the UK.
The trends reported within the HomeLet Rental Index are brand new tenancies, which were arranged in the most recent period, providing an in-depth insight into the lettings market.
Head to https://homelet.co.uk/homelet-rental-index/ for more information.
Does this reflect what is happening in your area?
SEE ALSO - What are the best yields being achieved?UP NEXT - 1st evidence that Tenant Fee Ban = rent rise?DON'T MISS - Rents rise as Landlords exit the sectorNOW WATCH:
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Tenants face higher rents as a result of the demand for private rented housing outstripping supply according to the Royal Institution of Chartered Surveyors (RICS).In their latest survey of the housing market they say that demand for private rented housing has increased for an eighth month in a row. This comes as supply continues to fall, a trend which RICS says stretches all the way back to 2016.RICS warns that: “Given the consistent imbalance between rising demand and falling supply, rents are seen being squeezed higher over the next three months.”The warning mirrors that of Professor David Miles, a former member of the Bank of England’s Monetary Policy Committee, who says in an exclusive article for the Residential Landlords Association that “rents are likely to be higher as supply gradually shrinks.David Smith, Policy Director the Residential Landlords Association, said:“The Government’s approach to the private rented sector is hurting but it is not working. Despite its efforts to boost homeownership, demand for new rental properties is continuing to increase.“It is plain wrong to be making landlords the scapegoat for the housing crisis. Ministers need to change tack and introduce a range of pro-growth measures to boost the supply of homes for private rent. If they fail it will be tenants who lose out as they face less choice and higher rents.”
Hi Vanessa, do you by any chance know of a website which shows historical rent data? I am interested in rental figures for the past 10+ years? I remember the Home website used to have it but it seems to have disappeared and I can't see anywhere else that has it. Many thanks
Demand for new rental properties are increasing, while Landlords are being deterred from entering the sector. The ones that do, are forced to increase rents. Basically, nobody is a winner.