UK Rent Prices Hit New Record High on Investment Property

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UK rent prices hit a new record high in August, according to the latest data released by HomeLet.

The August HomeLet Rental Index showed that the average UK rent was up by 2.4 per cent when compared to the same month last year, to reach a new record high of £970 per calendar month.

When London is excluded, the average UK rent has now reached £802, marking a rise of 2 per cent (£16) on the level seen last year.

London itself saw an even higher increase, with rents up by 3.5 per cent (£57) on an annual basis to reach an average of £1,689.

The average UK rent rose in all twelve of the regions covered in the HomeLet Rental Index between August 2018 and August 2019.

After Greater London, the largest increase in average UK rent was seen in the North West with an annual rise of 3.3 per cent.

Meanwhile Northern Ireland was the worst performer with an annual rise of just 0.2 per cent, and the usually vibrant South East of England also struggled with rents up by just 0.9 per cent over the year

Commenting on the data, chief executive of HomeLet, Martin Totty, said: ‘In times of uncertainty people tend to defer major purchases – opting to wait for the turbulent times to pass – and there is nothing more ‘major’ than buying property. In the case of Brexit – deal or no-deal – it is still unclear how long the uncertainty will continue, which could spell positive news for private landlords as more people choose to rent rather than risk entering the property market at the wrong point in the cycle.’

He continued: ‘Recently released annual results from a number of major quoted property agents point to a resilient private rented sector in contrast to a subdued sales market. With a still unclear outcome of the current political impasse and the increasing prospect of a further extended delay in the UK exiting the European Union, the contrasting fortunes of the two main segments of the housing market seem likely to continue for some time.’

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