Higher Rents Making Tenants Stay Longer
Tenants are looking to stay in their existing rental home for longer as they look to avoid higher rents elsewhere, new insight from HomeLet reveals.
Renters are trying to avoid increases in rental prices, with the latest HomeLet Rental Index, released this morning, revealing that the average rent in the UK hit another record high of £1,103 per calendar month (pcm) in May, up 1% on a month earlier.
When London is excluded the average rent in the UK is now £928, up 9% on last month.
Mike Dawson, a director at HomeLet, said: “With continued universal pressure on households, we’re seeing tenants stay in properties for more extended periods.”
Somewhat concerningly for renters, rental prices look set to rise further in the coming months, which is unsurprising, given the growing supply-demand imbalance in the PRS, as a growing number of landlords, deterred by tax and legislation changes, flee the market.
Dawson added: “As summer approaches, we expect tenants to move at a much higher rate which means average rents for new tenancy agreements will continue on an upward trajectory.
“The rental market plays a critical role in satisfying the UK’s housing needs, and the long-awaited Renters’ Reform Bill needs to strike the right balance by protecting both tenants and landlords.
“With many landlords already exiting the market, the government’s commitment to legislation will provide the biggest change to rental law in a generation and shouldn’t risk marginalising landlords even further.”
Rent to Income Ratios for All Regions
|UK||30.5 %||30.5 %||0.0%|
|UK Ex London||29.5 %||29.6 %||-0.1%|
|North East||24.1 %||24.0%||0.1%|
|North West||29.4 %||29.4 %||0.0%|
|Yorkshire and The Humber||27.0 %||26.8 %||0.2%|
|East Midlands||28.8 %||29.0 %||-0.2%|
|Wales||29.0 %||29.1 %||-0.1%|
|South West||32.0 %||32.0 %||0.0%|
|South East||31.3 %||31.8 %||-0.5%|
|London||34.0 %||34.0 %||0.0%|
|East Of England||30.6 %||31.3 %||-0.7%|
|West Midlands||29.0 %||29.0 %||0.0%|
|Scotland||26.0 %||25.2 %||0.8%|
|Northern Ireland||23.4 %||27.6 %||-4.2%|