UK common hire now stands at an all-time excessive of £ 1,007, up 5.9% from the identical interval final 12 months and up 7% from 2019, with each area within the UK displaying an annual value improve, in keeping with the most recent printed figures. by Homelet.
London is experiencing the primary value improve in over a 12 months, with an annual variance improve of 1.5% to £ 1,607 CFM. Nevertheless, the worth remains to be decrease than earlier than COVID, as the typical was £ 1,611 CFM in June 2019. With out the capital, the UK common hire value is 8% greater than the final 12 months, as much as £ 861 CFM, displaying a ten% development on pre-Covid costs.
The very best annual value will increase have been seen within the south-west of England, with the present common value of £ 948 CFM marking a ten.5% improve from the identical interval final 12 months and a 12.6% improve from pre-Covid ranges. Scotland noticed the most important MOM value hike, with the typical value rising 4.4% to £ 738 CFM in June.
Elsewhere, rental costs within the North East fell 2.3% from final month to a mean of £ 547 CFM, one among solely two areas to expertise a drop in MOM costs.
Andy Halstead, CEO of HomeLet & Let Alliance, feedback: “All through the coronavirus pandemic, the federal government has rightly taken steps to guard tenants, however has not gone far sufficient to steadiness house owner safety. It is a continuation of the theme we have seen for a few years, with owners being penalized with greater taxes and elevated complexity in gaining possession of their properties.
“Merely put, rising prices for owners means rising prices for tenants. Some homeowners exited the market because the stamp obligation break boosted the gross sales market, impacting stock ranges. These are all components that result in a rise in rental values for brand spanking new leases, that are nicely above the speed of inflation.
“The personal rental sector performs a significant position within the UK housing market. As restrictions start to ease, the flexibleness supplied by leases can be essential for mobility throughout the UK and as a way of accessing inexpensive housing that meets the various wants of a variety of tenants.
“The trade works finest when there’s a mutual steadiness between tenants, landlords and rental brokers. The federal government can not deal with the rental market as an afterthought. Insurance policies that focus solely on homeownership will solely worsen the issues within the UK housing market.
“Some individuals may be shocked to see the typical UK rental value dip above the £ 1000 mark, however the dynamics of provide and demand will solely proceed to drive rental costs up. for the remainder of the 12 months, and we’ll see extra data damaged in 2021. “
Commenting particularly on London, Halstead mentioned:“The influence of Brexit on worldwide tenants has been exacerbated by the pandemic, particularly in London. Positively, this month we are able to see the demand for rental properties in London growing, not solely by the rise in rents but in addition the quantity of recent leases that we have now seen within the capital.
“After a 12 months of declining demand and rental values, we are able to anticipate to revisit development because the influence of the pandemic step by step eases.”