Rents shooting up
Far from the expected Autumn lull, UK rents climbed again in October, according to Landbay’s monthly Rental Index.
Rents rose both month-on month (0.7%) and year-on-year across the UK in October, with the only exception being Scotland, which only saw a marginal monthly fall of 0.1% to £696.
In fact, the last time the index noted a sustained period of falling rents was in the winter of 2012/3, when rents saw monthly falls from August 2012 to April 2013. Rents increased every month last year and have been strong again this year, seeing only small month-on-month falls between June and August before rising again in September and October.
Family homes fuel rise
October’s rent increases were fastest for three-bed properties, which are often rented by families moving for work (up 4.7% year-on-year), and one beds, which are most popular with first jobbers and young professionals (up 4.4%).
Unsurprisingly, the increases are being driven by London and the South East. In October London rents increased by 4.1% to an average of £2,063, whilst rents in the South East rose by 3.4% to £1,033.
Elsewhere in the UK the fastest rent increases were seen in Aberdeen, Edinburgh and Bath.
John Goodall, co-founder and CEO of Landbay said:
“Seasonality has always been a strong feature of the UK’s rental market so the fact that it appears to be declining in influence is a powerful sign of the increasing strain the private rental sector is under to house the UK population. The simple fact is that more people are renting for longer and there aren’t enough properties to meet demand. Now that the economy is improving and wages are rising, people are willing to compete for rental properties, pushing up prices.
“In previous years, price-conscious tenants could take advantage of the seasonal dip in rents to find cheaper rents in the autumn or winter. Consistent rent rises throughout the year has taken away that option in large parts of the country.”