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TODAY'S OTHER NEWS

Rents increase ahead of general inflation

The cost of renting a home in the UK is rising quicker than the rate of inflation, with the average monthly cost up 3.8% in the 12 months to February, according to the HomeLet Index.

The data, based on new lets agreed by landlords and agents using the firm’s referencing service, reveals that the average rent in the UK is now £940 per calendar month (pcm).

When London is excluded, growth, in percentage terms, was actually a lower rate of 3.2% year-on-year, with the average rent in the UK, without the capital, now stood at £782pcm.

Once again, rents in London remain the most expensive in the UK, at an average of £1,599pcm, which is up 4% on last year.

But the region with the largest year-on-year increase is the South West, showing a 7.7% rise between January 2018 and January 2019.

Rents in February increased in all 12 regions monitored by HomeLet.

Rents continue to rise in response to all of the extra costs landlords have experienced over the last few years, while prices are also being pushed up by strong demand from people struggling to get on the property ladder.

Poll: Do you expect the cost of renting property in the UK to continue rising quicker than the rate of inflation in the near term?

PLACE YOUR VOTE BELOW

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    There's a very good reason for this, the extra costs being placed on landlords, it always was going to be paid for by the tenant, business costs increase the end user pays.

  • Paul Barrett

    Naively the Govt DOESN'T think your totally correct logic applies.
    Govt honestly believed that by reducing LHA it would force LL to accept cheaper rents!!!!!!!!!!!!!!!!
    Well that went well didn't it!??
    Because of such a bonkers policy LL chose NOT to let to those in receipt of LHA as they can achieve more from non-HB tenants or DSS tenants in the old parlance.
    Indeed they are evicting such DSS tenants as they cannot afford the market rent the LL requires!
    Now who would have thought that LL might refuse to take on HB tenants when they could take on tenants who could afford higher rents!!??
    Thus leaving Councils with far higher TA costs than had they just paid the market rent.
    Such market rent was and is usually ONLY about £150pm than the LHA rate.
    So far cheaper than TA costs etc.
    Govt tried to buck the market and failed miserably and is now having to pay the enormous costs of TA.
    I honestly believe that Govt thought that HB LL didn't have anyone else they could let to and so would have no choice but to reduce rents.
    Well that perception went a bit awry for the Govt didn't it!!!!!!!
    Surely they must have realised that with MASS UNCONTROLLED IMMIGRATION occurring in sucking in over 2500000 net migrants per year that there were plenty of tenant alternatives to pay market rents!?
    It looks unlikely that mass immigration will reduce anytime soon.
    This makes life very hard for the average DSS tenant who is no longer wanted or even needed by most LL.
    There remains and it will continue a massive unmet demant for rental accommodation by immigrants.
    Until the borders are closed then this situation will continue.
    Even with closed borders it would take decades dor sufficient properties of all types of tenure to be built for the existing population.
    The last thing in the world I would want to be is a TENANT.
    There simply aren't enough properties to go around.
    Being a tenant but having a home elsewhere is a better strategy
    One can always have lodgers in a resi home.
    The live -in LL can be renting elsewhere and just pop home every 30 days to keep compliance with resi insurance conditions.

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