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TODAY'S OTHER NEWS

UK rents rise 13.9% in last five years

UK rents have increased by an average of 13.9% over the past five years, according to HomeLet.

The group said its June rental index showed a continued increase in rental values across all regions of the UK, with the average rent in the UK is now stood at £941 per calendar month (pcm), up 1.8%, or £17, on the same time last year.

Rents in June increased in all 12 regions monitored by HomeLet, led by gains in Northern Ireland, where rents are up 4.7% year-on-year.

When London is excluded, growth, in percentage terms, remains the same at 1.8% year-on-year, with the average rent in the UK, without the capital, hitting £781pcm.

Unsurprisingly, average rents in London remain the most expensive in the UK, at an average of £1,611pcm, which is up 0.9% on last year.

Martin Totty, chief executive of HomeLet, commented: “Since the beginning of the year we have observed a gradual decline in the year-on-year variations in London rents, which reflects what is also being observed in the London housing market thus far in 2019.

“What is most striking about the latest data is the consistency of rental prices we are seeing across the whole UK, with all regions recording a continued year-on-year increase. This is a continuation of the theme we’ve been seeing since mid-2017 as rents have continued to edge up.”

The research also reveals that the average duration of tenancy for rented properties in June was 30.7 months, down from 32.1 for the corresponding month last year.

Totty added: “One point of interest in the data is that the average duration of a tenancy has reduced to 30.7 months, from 32.1 months in the same month last year.

“Whilst this isn’t a significant reduction, the drop does coincide with the introduction of the Tenants Fee Act in England and could be a very early indication of more mobility amongst tenants. It will be interesting to observe what prices do throughout the whole country in the coming months.”

Poll: Do you expect UK rents to rise by at least 13.9% over the next five years?

PLACE YOUR VOTE BELOW

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    Yep and guess what they are going up again more. You can get your sponsored think tanks and land of the many bs but I can tell you why. Loads of people not enough houses Section 24, no tenant fees cgt changes and a hostile attitude to landlords means only one thing.

    We have to put the rent up cos we don’t do this for free!!

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    I only agree with one half of your comment. Yes s24 disaster, yes hostile attitude & no fees. No shortage of Housing. Houses not selling also difficult to rent so can’t
    put up rent. I think the value of property gone down a great deal you have to take on board the money power gone through the floor/ currency drop.

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    Hi Michael are you saying you are finding it difficult to rent out your properties or sell? What area is your portfolio.

     
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    nowhere near the amount council tax and energy prices have risen in the last 5 years

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    My rents only go up if Rates increase, Service Charges increase, Maintenance costs increase. Dont put up just because i can.

    Suzanne Morgan

    Same here Steve. My priority is to keep my tenants who are excellent and look after my property. I am not going to sting them with a rent hike that they will struggle to pay. I have only increased the rent this year to cover my additional rise in insurance premiums on house and boiler. The going rent for the area also is comparable with what my tenants pay so I am ok. It is more important and hassle free that my tenants are happy . Happy tenants therefore happy me.

     
  • Paul Barrett

    Hmm!!
    I don't care what my costs are.
    I always charge the maximum the market will bear.
    I am a rent seeker.
    Not interested in providing my properties for less than market value.
    If this means it becomes unaffordable for existing tenants then TOUGH!!
    I don't control the market.
    That market is its own creation.
    I just use it to gauge what rents I can achieve.

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    Yes Paul Exactly tenant demand, available properties and cost to let determines the market. If the gov are gonna make it more expensive for me then someone has to pay. It’s unfair on the tenant but the sooner they realise the political game involved the better all round.

  • Suzanne Morgan

    Each LL will manage their property/properties according to their ethos. My one and only property is a supplementary income to my pension when interest rates were zilch. However the overriding priority to me is that the property is respected and that I have tenants who enjoy the home which I provide and give me peace of mind . If that were not the case then I would leave the property empty and enjoy the rise in the value of the house which has rocketed in five years of buying it. The rent for the area is not astronomical so it would not be in my interest to charge anything exceeding the going rate or I would struggle to find a tenant or indeed keep a tenant. I consider my tenants as guardians of my investment (and they are paying me too) and as long as they look after it, any rent review will reflect that.
    I also have a Spare room lodger, who pays me as much as my tenant in my rented house . That is because I have a very desirable country cottage with a very large double room and can ask that rent because there are queues for the room when I have advertised it. The market as you say dictates Paul.

  • Paul Barrett

    Yep I must admit I gain the impression from the PTB that they consider LL won't react to all the cost impositions and increase rents.
    I believe that they believe LL will stay in the market come what may.
    Almost as though LL aren't operating as businesses and will absorb all sorts of costs without increasing rents to cover costs.
    We had an insight into this bizarre thinking when Govt reduced HB.
    They stated at the time that this should reduce rents!!!
    Leaving them with a smaller HB bill.
    How could a Tory Govt so misunderstand business!?
    Of course we all know what has happened.
    LL have booted out HB tenants who can no longer or choose not to afford the market rents and have now become homeless bring accommodated at massive expense to Councils in TA or DHP has been used to mask the fact that HB is inadequate on its own to achieve or maintain a tenancy.
    DHP is a massive political obsfucation device to prove the HB freeze has worked.
    We all know it hasn't.
    Which is why No DSS is still and increasingly prevalent.
    Govt can't force LL to take on HB tenants.
    I find it most bizarre that the Tories don't seem to understand how a market economy works as far as housing is concerned.
    They honestly believe that GR will vote for them the more they bash LL.
    Just proves how politically disconnected the Tories have become!!

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    pb--we have no tory govt

    at best its a libdim administration

    our govt ended by major in 1997

    Paul Barrett

    Yep I certainly agree with you.
    The Tories have lost their way.
    We need Thatcher MK2.
    Will Boris be it?
    He espouses being a One Nation Tory.
    Not sure that is the solution.
    Rather a bit of the BrExit Party with a bit of the Tory Party might bring about a more constructive Govt!!!
    We shall see what happens!

     
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    I have just re advertised a property in Liverpool for 495 instead of the 425 I was getting and have had 14 calls in less than 24 hours tells you all you need to know there simply isn’t enough properties to go round in the lower end of the market mortgage payments and insurace 95 job done thanks to the Tory’s for pushing rents and demand sky high I owe you one

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    And a 13.7% Yield means southern investors are flocking up north as the returns are great meaning capital appreciation is great aswell once again thanks Gideon I owe you one

     
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    Returns here in Wales are static as usual and as it is all to do with affordability, it is almost impossible to raise rents. Even a modest increase means that a property could remain vacant for three months or more.
    A fair rent for one of my large apartments would be £600 per month, I tried to raise it from £525 and ended up getting £550 after three months trying to rent it out.
    You simply can't buck the market here, they simply won't pay above what is considered affordable.

    Paul Barrett

    Wales has always been a bit impoverished and has become more do with the car industry shutting down.
    Swindon LL in particular must be bricking it.
    With all the attendant Govt cost burdens imposed on LL I do wonder if Welsh LL are even covering their costs.
    S24 in particular must be a killer.
    But even running at a loss is better than leaving a property empty.. Having a tenant is a lot cheaper than having to pay for a Security Guardian.
    But with the new 6 month notice period and the still dysfunctional eviction process I can't see how Welsh LL could survive a rogue tenant.
    I know I will not let in Scotland or Wales due to the changes.
    That leaves England.
    But if the Westminster Govt looks enviously at what the Scottish and Welsh Govts are doing and tries to introduce such bonkers policies God help the English PRS.

     
    Suzanne Morgan

    John Hughes. You are correct. My rental property is in Chepstow and not in a a particularly wealthy area. I am just grateful that I have first class tenants and that to me is worth more than a sky high rent which would be affordable to most local people. Quality of the people renting my property is paramount.

     
  • Paul Barrett

    Just goes to show there is no one way for LL to operate.
    We all operate differently so it really isn't possible to impose blanket policies like rent controls.
    LL are not one amorphous mass.
    We all have our own peculiarities.
    Some of which match up with certain tenants.
    That is the beauty of the small individual LL
    Rather than a one size fit all corporate methodology for tenants the individual LL response will be of far more use to tenants as small LL tend not to have prescriptive approaches.

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