The latest data from HomeLet shows demand for rental properties remaining high and in examining the data from the last five years, HomeLet has found that the UK as a whole has experienced a 13.9% growth in rental values (12.5% when London is excluded).
The headlines from June 2019’s HomeLet Rental Index are:
- The average rent in the UK is now £941, up by 1.8% (£17) on the same time last year
- The region with the largest year-on-year increase is Northern Ireland, showing a 4.7% (£30) increase on the same time last year
- When London is excluded, the average rent in the UK is now £781, this is up by 1.8% (£14) on last year
- Average rents in London are now £1,611, up by 0.9% (£15) on last year
- All 12 of the regions monitored by HomeLet showed an increase in rental values between June 2018 and June 2019
- The average duration of tenancy for rented properties in June 2019 was 30.7 months, this is down from an average of 32.1 last month
Commenting on the data, chief executive of HomeLet, Martin Totty, said; “What’s most striking about the latest data is the consistency of rental price increases UK wide, with all regions of the UK recording a year on year increase in average rental values. This is a continuation of the theme that we’ve seen since mid-2017, with average rents steadily increasing over this period.
"Looking ahead, with the introduction of the ban on tenancy fees, it seems unlikely this trend is set to change over the remainder of this year at least. Whilst the aim of the Tenant Fees Act is to reduce the costs that tenants can face, landlords still need to cover the costs that are incurred when setting up a tenancy. With landlords already feeling the impact of taxation changes and demand remaining high, the expectation is that costs will be passed back to tenants through higher rents, particularly for new tenancies.
"This month has also been the first in a long time that the average duration of a tenancy has reduced. Our data shows that it has changed from an average of 32.1 months in May to 30.7 months in June. Whilst this isn’t a big change, the drop coincides with the reduction in tenant fees and could be an early indication of more mobility amongst tenants.”
The trends reported within the HomeLet Rental Index are brand new tenancies, which were arranged in the most recent period, providing an in-depth insight into the lettings market. Head to homelet.co.uk/homelet-rental-index for more information.