Private sector rents in the UK are rising at the fastest pace since 2008 according to property portal Zoopla.
With strong demand and limited supply, rents in September reached 4.6% higher than the previous year, with average monthly rent standing at £968.
Not including London, UK rents rose 6% in the year, a 14-year high according to Zoopla, which based its figures on new property listings on its platform.
Regional variations
The biggest increase was in the South West, where rents had gone up by 9% on the year, followed by Wales at 7.7% and the East Midlands at 6.9%. Growth in Scotland was 2.7%, with average rent at £627 per month, while in Northern Ireland it was up 5.8% and at £633 per month.
Shortage of rental properties
Zoopla says that there is a higher demand for accommodation in cities, possible because of the reopening of city centres after lockdowns.
Gráinne Gilmore, the head of research at Zoopla, said: “The swing back of demand into city centres, including London, has underpinned another rise in rents in quarter three, especially as the supply of rental property remains tight.
“Meanwhile, just as in the sales market, there is still a cohort of renters looking for properties offering more space, or a more rural or coastal location.”
During the past year, as property prices have soared, some landlords have taken advantage of this and cashed in their investment. The high prices coupled with tougher terms for buy-to-let landlords have made this an attractive option. As well as stricter terms for landlords prior to the pandemic, the subsequent ban on evictions has seen around half of them lose money in respect of unpaid rent, according to the National Residential Landlords Association.
Tenants are finding themselves gazumped by rivals for properties who are offering to pay up to 25% more than the requested rent. Landlords are on occasion asking for three months’ rent upfront or requiring guarantors to prove that they have income of at least three times the annual rent.
Would-be tenants are struggling to even view properties, with potential tenants making offers without even waiting to see round.
Trade body Propertymark reports that in areas such as Cornwall and Kent, around 30-50% of properties are being rented for more than the asking price.
While London has yet to follow suit, once workers return to the office more fully, renters are likely to find a similar situation there.
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