Rents rise above inflation as tenant demand grows
Average rents in the UK reached £953 per calendar month in December – a rise of 3.5 per cent compared to the same month last year, with some areas approaching 10 per cent rises.
Data from HomeLet showed the cost of new tenancies was growing fastest in Wales and the North West at 9.7 per cent and 8.3 per cent higher respectively.
With London excluded, the average UK rental value was £793 in December, up 3.9 per cent on last year and more than double the 1.5 per cent inflation rate for November, the most recent figure available.
HomeLet’s December Rental Index revealed that rents rose last year in all 12 of the UK regions covered in the research.
Only the South West saw a below inflation rise at 0.8 per cent, while the West Midlands was on par with the wider economy, rising by 1.6 per cent.
Solid rent growth continuing
HomeLet said there were several reasons behind the increase in rental prices which had been ongoing for the last two years, including increasing costs to landlords.
However, it highlighted that the key element was growing demand from tenants which showed no signs of slowing down.
Chief executive Martin Totty also noted that continued disincentives pushing landlords out of the market could further restrict supply and push prices up more.
“So long as the balance between supply and demand remains, it would be reasonable to predict a further period of solid rental price growth throughout 2020,” he added.