Please Note: This Article is 5 years old. This increases the likelihood that some or all of it's content is now outdated.

Private rents increased to an average £848 a month in April, according to the latest research from industry experts.

The figure was a 2.9% increase on March, says landlord insurance firm Homelet.

Year-on-year rents were up 7%.

The biggest increases tenants had to pay were in London, where monthly rents were up 2.4% and annual rents jumped by 9.4% to an average £1,348 – a new private rent record for Homelet.

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The firm calculates tenants are finding renting in the capital costs them 96% more than the rest of the UK.

The study also revealed tenant incomes are rising – by around 5.9% in the past year.

“April data shows the average cost of renting a home in Greater London reached a new high,” said Martin Totty, chief executive of Barbon Insurance Group, Homelet’s parent company.

“This is the largest annual increase in the capital’s average rental figure since April 2011 – meaning tenants in Greater London are currently paying rents almost double that of the rest of the UK.

“Although tenants in Greater London are paying much higher rents than anywhere else – they are also 57% higher than the region with the next highest average rents – the South East.

“Demand for renting in the capital appears to remain strong across a diverse group of people – from young professionals to students. Whether average rents can continue to increase at this rate is unclear given the more modest rise in average incomes.

“It may be the generally accepted relationship between rental values and income, which determines affordability, is less directly correlated in Greater London. The proportion of people who rent who are drawn from overseas who come to work or study for a period of time, may in part be responsible for the Greater London market behaving very differently to the rest of the UK.”

Please Note: This Article is 5 years old. This increases the likelihood that some or all of it's content is now outdated.

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