The latest edition of the HomeLet Rental Index shows a near double-digit average annual rent rise across the UK.
Renters can now expect to pay £1,283 pcm for the all-UK average, or £1,068 pcm outside of London. This is up 0.55 and 0.66 per cent respectively from last month alone, and a hefty 9.56 and 9.43 per cent respectively compared to this time last year.
As rising prices fail to match wage increases for many, renters in the UK can now expect to pay nearly a third (32.7 per cent) of their wages in rent, which is a 2.1 per cent increase compared to this time in late 2022.
In the capital, people can expect to pay nearly two fifths (38.8 per cent) of their wages in rental costs.
Commenting on the latest data, Andy Halstead, HomeLet & Let Alliance chief executive officer, says: “The picture, to put it frankly, is bleak in the UK. Rent prices in our country have increased by almost 10 per cent in just a year, and the last few months in particular account for that huge surge. In the summer, the increase was around five per cent year or year, so you can see the hopelessness of the situation as we head towards the winter months.
“There have been a few news articles and comments from the Government recently about how the cost-of-living situation is starting to look more positive and inflation is slowing. However, our data shows that rents still rose in most regions across the country between September and October 2023. So what do we believe?
“Rent has increased month-on-month by as much as 1.35 per cent in the North East, 1.29 per cent in Wales, 1.26 per cent in Northern Ireland – plus 0.55 per cent across the UK in general. As we collate this data every month, we hope one day to see negative figures in the monthly variances, and more affordable rent for all. But as it goes on, our hope is dwindling.
“It really feels like there’s no end to this madness, it’s utter chaos. We’ve been watching rent prices creep up every month and know this is an unsustainable future for both tenants and landlords alike.
“Renters are being priced out, and homeowners are left with nobody to fill their vacancies. I believe we need to see an end to these soaring prices, and fast, before we have a full rental crisis on our hands in the UK. Let’s watch this space.”
Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions.
If any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals, then the post may be deleted and the individual immediately banned from posting in future.
Please help us by reporting comments you consider to be unduly offensive so we can review and take action if necessary. Thank you.
.jpg)
.png)
Join the conversation
Jump to latest comment and add your reply
They are kind of missing the point. It's not the cost, its the fact that there is a massive gap between supply and demand. I just advertised a 2 bed property at a reasonable price and I got 100 enquiries in 3 days. Obviously not all suitable, but plenty are, and lots of of people saying they are desperate and they will take anything even if not suitable. Unlike an agent I will take the time to find the right people who are best suited to the property. Quite a few say their landlord is selling. Sad that nobody in the Govt is listening to the chaos they have created.
Rents would drop significantly if the Renters Reform legislation were dropped by both political parties. I simply don't think that the control of landlords' property can be justified when it does not benefit the tenants. The legislation affects everyone badly:
for landlords it means that they will sell, let in a way which is not covered by the legislation or invest their money in another way entirely;
for tenants it means their choice of available properties is much lower and the available properties are much more expensive;
for local authorities it means that they are confronted with a housing crisis which is worsening all the time, and one for which they do not have the resources to cope.
I think it is questionable that the legislation is legal when these effects are totally predictable.
Morning Ellie. I'm not sure I would agree with your first sentence. Granted the RRB is extremely damaging but S24 and interest rates are, IMHO, the biggest drivers of the rent increases.
What I still struggle with is that you could ask anyone with even half a brain what would be the effect on the price of bread if extra tax was put on flour, and they would almost certainly come up with the right answer. Apply it to housing and a great many apparently intelligent people don't see the obvious outcome.
Good morning John,
You are quite right, of course, that interest rate rises and Section 24 are causing some landlords to put their rents up.
However, once demand for flats drops, then irrespective of landlords' expenses, rents fall dramatically. At the moment, rents can rise to cover mortgage expenses because there are more than a hundred applicants for each flat advertised.
Agreed that everything is about supply and demand. When S24 was introduced (along with the other extra taxes), the LL haters were all laughing and crying that we'd all go bankrupt because rents couldn't rise above where they were then. They're not laughing quite so much now are they?
Rents had to rise to cover costs and hopefully provide a small profit. Those that could not make the numbers work or had had enough, started getting out and that has fueled the imbalance between supply and demand. With the prospect of Labour getting into power, more will be selling up. Others will be hiking rents when they would not have otherwise done so. I'm one of them.
One important factor that is not often talked about are the landlords with impressively large portfolios, like Fergus Wilson for example, who at his peak had something like 1000 properties in a relatively small area. If Fergus was to wake up one morning and decide he's going to hike rents by 10% above market rate then that becomes the new market rate as 1000 tenants will not be able to find alternative accommodation in the area. Sure, some may move further afield but most will be tied to the area they are in.
So isn't it interesting that Government is encouraging the big BTR companies that will be the market makers. Yes they may well offer gyms and concierges etc (which put up their costs) but the point is that it isn't better for tenants, it is worse.
But back to your point about flats and the RRB. I agree that the bill will help to push landlords out and that makes it even easier for the big boys to control the market pricing. I don't personally see a significant drop in demand coming any time soon unless 'world events' take a really bad turn for the worse. Unfortunately that is quite possible though.
The likes of Ferus Wilson is a severe minority. most landlords only own one or two properties. Agree with your point on him in his area though.
I think you miss the point Nick. Of course there aren't many BIG portfolio landlords but it is they that set the market price.
If a landlord with one property raises his rent then he risks a void (though in the crazy market right now maybe not). A landlord that owns half the town can do that with all his properties and he will be fine.
Did you ever read Andy Shaw's book from some years back? Slightly different circumstances but with a similar outcome. Andy wanted to borrow more against his portfolio but was up to the limit on LTV. He came to an agreement with a local sales agent to market many of his properties above the market rate, though he had no intention of selling them and had told his tenants that. What happened was that anyone else in the area selling their properties saw similar homes going on the market at a significantly higher price than they were selling so they upped their price. Thus Andy had set a new local sales rate and once one or two of the local properties were sold he could revalue his own and withdraw more equity. He was a market maker.
What was it 10,000,000 ? The increase in the UK population over the last decade or so. Number of new homes in that time, few hundred thousand.... Knock off the executive apartments and holiday homes from that total and there's your problem right in front of you. Until all the Political parties, lobbyists and other interfering busibodies wake up and acknowledge the problem and then accept that Generation Hate, Acorn Nuts and Shelter are making it worse, chaos will ensue especially when the refugees from the Israeli conflict start to head to Europe and on to the UK.
At no point in this article, is the question asked ‘WHY are landlords raising rents’?
A poor whinging article with no mention of the context in which essential rent increases are happening.
Yes it's a nightmare out here I've been in my current property since 2011 I lived in this same flat before
For 13 years prior
I'm scared because I'm 59 did work up until two mths ago came out because i got ill I had a nervous breakdown my landlord gave me the new uc something form it's a legally binding document to leave by June
I could t find no where that I can afford
The council have not e ough properties
So my landlord has given me more time & said if he could help in any way he would
But it's not down to him he's let me rent is home twice & I've loved it here
But he's getting on to & wa to to sell off all his properties so he can retire
Leaving me with not a hope in he'll of getting a home.
So Sorry Annette for your situation.
Everytime Gove opens his mouth about Renter's Reform Bill or Angela (not got a clue) Rayner boasts about introducing Restrictions on Landlords as soon as Labour get into power, it causes another number of Landlords to decide to sell up. Gove actually seems to have pushed back a little on his plans so I'm hoping he's realised that the people any Reform Bill is supposed to help will actually do the opposite.
Get rid of Renter's Reform Bill and threats of a Landlord Register and loss of Section 21 and you'll get rid of the problem of rent increases and tenants evictions to a large degree.
100% right, of course!
Please login to comment