According to recent reports, the number of people renting properties in the UK is on the up, as are monthly rental values across the UK.
Tenants are now paying an average of £811 monthly rent, according to the HomeLet Rental Index for June, representing a 3pc rise on the previous month and a 5.1pc increase on a year earlier.
The figure represented “the highest average UK rental amount on record”, said researchers, as eight of the 12 regions tracked by the survey saw average rents rise last month.
The picture of accelerating activity in the wider housing market was reinforced as property website Rightmove said ‘home sellers’ asking prices have hit record highs for three months in a row‘.
In Greater London, it now costs an average of £1,270 per month to rent a home, the highest price since September last year.
With the impact of the capital’s housing market stripped out, the average UK rent was £681 PCM, which was the highest since August last year.
Andy Richards, HomeLet’s Business Development Director, said: “During this time of year, we do generally see an increase in the number of people renting a new home, particularly students who move into higher yield properties, which therefore pushes average rents up.”
However, he noted that tenants’ income is not keeping pace with rental inflation, with the survey showing the average tenant’s income rose by just 0.8pc to £28,000 a year.
“Yes, rents are going to increase naturally, however, costs are rising at a rate much faster than both inflation and tenant income,” he said. “With recent reports of increased tenant rent arrears, it appears that maybe those renting a property just cannot afford spiralling living costs.”
The HomeLet index tracks average rents on the properties rented in the UK using its tenant referencing service. HomeLet says it references up to 1,700 applicants a day, which is a lot, especially when considering there are numerous other tenant reference services out there such as Let Alliance (our company preferred referencing provider) and Experian.
So it really does look like renting is on the up, and will be the most popular way people choose to live in the coming years.
If you’re considering looking for a rental property in all areas across Greater Manchester or East Lancashire, and you would like some honest advice, please give our property team a call today on 01706 828229.