There has been a significant rise in demand from people looking to rent property amid political and economic uncertainty and this is placing upward pressure on rental values, the latest figures show.
The private rented sector often provides greater certainty and security for those who need to move home, especially during uncertain times, with fixed rent over a fixed term helping tenants to manage their budgets and plan their lives accordingly.
This largely explains why there has been a sharp rise in tenant demand, helping to push up the average cost of renting a property in the UK by an average of 2.5% over the past year, according to the latest HomeLet Index.
Tom Gatzen, co-founder of ideal flatmate, commented: “While political and economic uncertainty may be bringing a slowdown in house price sales, the consequential, additional strain being placed on the UK’s lettings market has resulted in strong growth where rental costs are concerned.”
The HomeLet data, which is based on new lets agreed by landlords and agents using its referencing service, reveals that average rents in London unsurprisingly remain the most expensive in the UK, at an average of £1,588pcm, which is up 3.7% on last year, and this trend looks set to continue.
Gatzen added: “Having bore the worst of the Brexit brunt across the sales market, London is driving price growth across the national rentals market, as an already inadequate supply is being stretched even further.
“This is largely due to buyers refraining from a purchase and remaining in the rental sector, as well as the reduction in suitable properties on the market due to the government’s crusades against the buy-to-let sector in recent months.
“Looking ahead, London remains one the places to live and work, in or out of Europe, and this consistent demand will ensure rent prices remain buoyant regardless of how or when we exit the EU.”