According to the latest figures released from Homelet, at +6.2%, rents are growing at the highest rates ever outside London. Meanwhile, in the capital, they are falling at the highest rate ever rate seen (-4.7%).
Homelet's data revealed that the UK’s average rent is now £984 - a 3% increase on last year. When London is excluded, the UK’s average rent is £840, showing an increase of 6.2% on last year.
Ten of the twelve regions monitored by HomeLet showed a YOY increase in rental values between February 2020 and February 2021, with the East Midlands seeing the most significant growth at 8.1%.
As the UK economic looks uncertain for many, landlords are urged to consider rent protection.
Andy Halstead HomeLet and Let Alliance CEO, said: “Those in the lettings sector warned of the Tenants Fees Act’s unintended consequences, along with the impact of the continued assault on landlords through policies that disincentives property investment. We’ve seen the volume of UK landlords dip, whilst supply from tenants has continued to grow. Landlords have to charge more to cover their essential costs, including professional letting agents’ valued services. Ultimately this pushes increased rents back on to tenants, the same group who supposedly should have benefited from legislation like the Tenants Fees Act.”
“The situation with COVID is only making this trend much more pronounced. We have high demand areas where stock levels have remained flat or even declined because tenants want to rent for longer and fewer landlords are investing in property.
“Landlords face the genuine prospect that rent arrears will increase whilst the time to obtain vacant possession is climbing. As the UK’s National Rent Protection Scheme provider, we’ve seen an exceptional demand for our insurances that cover missed rental payments and legal costs.
“We only provide cover through professional letting agents, with the economic outlook so uncertain for many tenants; I’d strongly urge any landlords to consider their insurance needs and contact their managing agent before it’s too late.”
The impact of Government policy on the sector
Andy continued: “With almost 1 in 5 people living in the private rented sector, it plays a critical role in the UK’s housing supply chain. Tenants should have the ability to rent a property at a reasonable price, whilst landlords and letting agents shouldn’t have to live in fear of future Government policy. The continual raft of legislation seemingly favouring tenants or only pushing homeownership to capture the popular vote needs to stop.
"The Government needs to listen to the lettings industry’s experience; landlords and letting agents want good tenants with a fair balance between all parties’ rights.”
