Tenant Rents Still Rising
Tenant rents have risen in all parts of the UK in the past three months, according to the quarterly Rental Index compiled by HomeLet (http://homelet.co.uk/).
These latest figures for tenant rents show that the average rent for a new tenancy in the UK outside Greater London now stands at £738 pcm. The average rent in Greater London, meanwhile, now exceeds £1,500 for the first time.
This survey suggests that tenant rents agreed on new tenancies across the UK in the quarter ending May 2015 were 10.7% higher than for the same period in 2014.
Tenant rents in the south west of England recorded the greatest increase, with average rents 13.6% higher than in 2014. The south east of England showed increases of 9.4% and Scotland 9.6%. Greater London recorded a tenant rent increase of 9.4%, bringing the average new tenancy to a record high of £1,506 per calendar month.
Victor Jameson of Cambridge letting agents New View Residential commented: “The increase in tenant rents continues at an incredible pace. When you consider that we have just entered a period of deflation, these increases are remarkable.
“While this is obviously good news for landlords, you cannot help feeling this is going to be a bit tough for tenants on lower incomes. It seems clear that the housing market is out of balance and something needs to happen to resolve this.
“Successive governments have looked at letting agent regulation and fees as a way of managing the growing frustration of generation rent. Really, this is just a diversion tactic. Letting agents do not control tenant rents, the market does. The only people who can influence this is government.”
Original Article: http://www.lettingagenttoday.co.uk/
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