The analysis found that the average rent is now £1,243 per calendar month. On average rents rose by 1.1 per cent, with each individual region seeing costs for tenants grow. Rents outside of London grew by a typical one per cent to an average of £1,037.
Over the month, Scotland saw the largest hike at 3.5 per cent, followed by Northern Ireland on two per cent. The smallest change occurred in the South West, where rents moved by just 0.2 per cent.
The shifts are even more pronounced over an annual basis, with average rents growing by 10.3 per cent. Again Scotland was the region to see the biggest change, with rents jumping 15.8 per cent over the year, followed by the 12.9 per cent increase in London.
Stretched affordability
The study found that affordability is becoming a pressing concern for tenants, with rents now accounting for 32.1 per cent of incomes. That’s up from 30.2 per cent a year ago. The rent to income ratio grows to 38.3 per cent in London, though it’s notable that in both the North East and Scotland, renters are spending a smaller proportion of their income on rent than was the case 12 months ago.
Andy Halstead, chief executive officer at HomeLet, said that the consistent increases are a concern for landlords and tenants alike, as we are nearing a situation where many tenants simply cannot afford the rent.
He continued: “It is worth saying that extreme rental prices does not equate to all time high margins for landlords either. Landlords being unable to rely on rental income is a terrible scenario. Investing in rent guarantee insurance is becoming the only way for landlords to properly protect themselves during this time, and we highly recommend it.”
The Homelet study comes after research from Generation Rent which found that the majority of tenants experienced rent rises last year. Meanwhile more than 60 per cent of landlords have said they would increase rents in order to cover growing mortgage costs.
