Record Breaking UK Rents Rise Concerns
June 2022 saw a further 1.3% increase in rents, pushing the average monthly rental value to a record £1,127.
HomeLet analysed the rental property market across the country and revealed several notable trends that are rising concerns among tenants and landlords alike.
The rental index from HomeLet focuses on actual rental values for just-agreed tenancies. It gives an in-depth review of the rental market and current trends in the UK.
Rental Market — Summer 2022
Current rents in the UK reach £1,127 pcm (per calendar month) as values spiked by 1.3% in June 2022.
As for the London property market, average rents hit £1,868 pcm, also a new record for the capital. Excluding London, rents in the UK hit £948, still a 1.3% rise from last month.
Perhaps surprisingly, Scotland outperformed other areas regarding monthly rental growth. On average, rents in Scotland spiked 3.4% in June 2022.
Property Experts Share
HomeLet says that the recent research highlights that the rental market in the UK struggles to meet the current needs of tenants and landlords, with rising prices bad news for both parties.
One of the leading factors for rising rental values is the supply and demand misbalance.
And this trend might worsen if landlords continue to leave the market, increasing the supply gap. The recent survey by HomeLet reflects this trend, as 18% (22% for London) of surveyed landlords expect to reduce their portfolio or leave the market soon.
Moreover, 78% of tenants are worried about repaying rents. As a result, a market with challenging settings for both landlords and tenants is unsustainable.