Rents will rocket this summer without a change in government policy, the boss of tenant referencing firm HomeLet has warned.

CEO Andy Halstead says the government risks continuing to alienate landlords with its prolonged assault through policies that disincentivise property investment and drive up rental prices.

HomeLet’s Rental Index for March reveals the UK’s average rent is now at a record high of £992 – after the fourth increase in as many months. When London is excluded, average rent is £847, an increase of 1% on last month.

Halstead says that with almost one in five people living in the private rented sector, it’s fitting that the government should focus on it, with an informed policy that strives to achieve a balance between letting agents, landlords and their tenants. “Unfortunately, that isn’t the case at the moment,” he adds.

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“The continued increase in rents above the rate of inflation is a symptom of current policy.”

Halstead (pictured) believes the narrative that landlords and letting agents are driving up rental costs simply isn’t true. “Professional letting agents and landlords welcome initiatives that improve standards in the sector,” he says Halstead.

let alliance rents

“As demand increases, the UK needs more rental stock for tenants, not less. Without policy informed fully by property professionals, rents will rocket to record levels this summer.”

Nine of the 12 regions monitored by HomeLet showed a monthly increase in rental values between February and March, with Northern Ireland seeing the most significant rise of 2.9%.

However, London’s rents continue to fall year-on-year, showing a 5% drop between March 2020 and March 2021 – the tenth fall in annual variance over the year.

Read more about the government’s landlord bashing.

6 COMMENTS

  1. Too late! Rents are already rocketing. A property I let just over a year ago for £450, I’m now letting for £550. Two similar, but slightly smaller properties in nearby streets are renting for £595 and £625. These rents are well above the LHA rate and are being snapped up.

    I’ve been inundated with people wanting to rent my property. Some of them have told me that it’s getting impossible to rent privately. As soon as a property comes on the market it’s let. I’ve got a list of people on a waiting list.

    Another person was looking for property and it was up with an Estate Agent. They booked a viewing and when they got there there was a queue of at least 20 prospective tenants. They were lucky and got the property.

    Many of the landlords I know are selling up as properties become empty, and are investing elsewhere. I would have liked to increase my portfolio, but being a landlord just isn’t an attractive business to be in anymore. I’ve invested elsewhere.

    I’ve no idea where people who can’t get a mortgage, or don’t want to, are going to live. ‘Council’ houses are few and far between.

    Have you seen the tent cities in America? We tend to follow American trends. I hope this is one we’re not going to follow.

  2. I totally agree with everything Berlingogirl has said and I can echo her sentiments entirely.

    I have tenants that just moved to a bigger property (New baby) and they were paying £500 pcm. I’m taking the opportunity to upgrade the boiler and redecorate but my letting agent is already screaming at me to “Hurry up” they have loads of people on their books waiting for property to come available.

    Normally there would be about 20 or so two bed houses being advertised locally, currently there is just one and last week there were none at all, just a couple of three bed places. This is a town of about 20,000 inhabitants and a growing population.

    My agent has said that I will easily get £600+ and that in effect the skies the limit.

    However, to echo Berlingogirl I have a property going through conveyancing to sell and will NOT buy anymore PRS property unless or until the govt dispense with eviction ban etc and get the whole PRS back on an even keel in respect of the balance of risk and reward.

    Let’s not beat about the bush here, tenants not paying rent are criminals plain and simple, it’s called theft.
    Try walking out of Tesco with a bag full of shopping and there will be action, you will find yourself under arrest.
    Only in the UK is someone allowed to steal ‘000’s and get away with it, indeed be protected by the state.

    I’d like to know where Berlingogirl has reinvested though… That’s intriguing.

    My son based in USA recently made $45,000 in a few days trading game stop shares… Hummmm you would have though he would have tipped me off ha ha ha

    This govt are more left wing than Corbin IMHO.

  3. Landlord has to increase the rent as there are more and more health and safety certificates ( for example electric and gas certificates to obtain ) . And some tenants are not even cooperative to switch off the main power of electricity as it means there would be three to four hours of no Wi fi for them .

    Actually they even live better than most of the landlords as I don’t even have those certificates done at home .

  4. What a surprise – rental properties becoming in short supply and rents going up… Had two properties rented out – one now sold and other empty and up for sale. No way will I have tenants while current laws and treatment of landlords in place. Must be many like me who had one or two properties and found it absolutely not worth carrying on.

  5. I totally agree with the above comments.plus the govt are intending to put a minimum grade c epc on rental properties by 2028. This effectively means anyone with rental property without cavity walls is going to have to spend thousands trying to meet this idiotic criteria .I for one am seriously thinking of selling up , there’s very little profit in it any more

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