Rents rise sharply as demand remains ‘exceptionally high’

Average rents across the UK increased by 2.9% in January when compared with the same month last year, according to the latest data and analysis from Homelet.

The average rent across the UK now stands at £981 a month, the latest figures show.

Rental values between January 2020 and January 2021 increased in nine of the 12 regions monitored by the research, led by gains in the South West where rents are up 8% year-on-year.

Rents also increased significantly in East of England, the South East, East Midlands and West Midlands, with annual growth of 7.9%, 7.1%, 6.4% and 6% respectfully.

In addition, rents are up in Yorkshire & Humberside (4.5%), Wales (3.8%), Scotland (2.6%) and the North West (1.4%).

Rents remained unchanged in the North East, but fell in Northern Ireland by 2.1% year-on-year and in London by 3.6%.

According to the data, this is the eighth consecutive decrease in rental prices in the capital.

In fact, when London is excluded, the UK’s average rent is £839 per month, showing an increase of 5.8% on last year.

HomeLet CEO Andy Halstead said: “The data continues to show that demand remains exceptionally high in many areas. The needs of tenants have shifted throughout the pandemic, creating upward pressure on locations that offer more space, both inside and outside the property.

“Whilst rents are increasing; the expectation is that unemployment will increase further in the summer, undoubtedly leading to some tenants being unable to pay their rent. We’ve seen an exceptional demand for our rent protection products as agents look to safeguard their landlords and their management income.”

By Marc da Silva Property Industry Eye Mon 8 Feb 2021

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