HomeLet’s Chief Executive Officer, Martin Totty, was a guest on the BBC Breakfast show on Monday (7 April), after being invited to discuss growth within the UK’s private rented sector.
The story focused on key factors that are driving growth in the private rented sector and how the market has grown at varying rates across the UK. It was inspired by data from the March 2014 HomeLet Rental Index that shows the average cost of renting a home in Greater London is now almost three times more expensive than in the North East.
As part of the interview – which also included comments from letting agents in London and the North East – Martin discussed how he believes rental amounts have increased in correlation with tenant income.
Our data shows the highest earning tenants are also living in the areas where rents have grown at the highest rates. In contrast the lowest earning tenants appear to be renting in regions where the rental market has remained relatively stagnant.
Martin mentioned how landlords would therefore be reluctant to increase rental amounts too much in areas with low tenant income such as the North East – as to price people out of the market would mean they potentially wouldn’t receive any rental income.
However, Martin also highlighted how savvy renters in London appear to be moving to the less fashionable areas of the capital where rents are lower.
Affordability seems to be the key driver of rental amounts across the UK- and Martin believes increases in average rents will always correlate with tenant income.
However, our BBC coverage didn’t end there! Martin was then asked to discuss the rental market in the South East on BBC Radio Kent. He was interviewed about towns within the county and how much rental amounts in these areas have grown during the past 12 months compared to other parts of the UK.
Stats that were discussed as part of these interviews were taken from the March 2014 HomeLet Rental Index. The report is now one of the most highly regarded reports on the private rented sector, and our data is used by a variety of people - ranging from students and letting agents to economists and politicians.
Being asked to discuss the UK’s rental market on BBC Breakfast is a great accolade to HomeLet, and we were delighted to share our wealth of knowledge and data on this continually developing market. Our coverage also reflects HomeLet’s strong position - and reputation as an authoritative voice - within the market.