HomeLet’s chief executive has spoken out against the government for making it harder for landlords after it emerged that rents have jumped by a huge 8.3% year-on-year.
Growth has been driven by Greater London, HomeLet’s rental index indicates. The cost of renting in the city has inflated by 12.6% in a year, reaching £1,752 in December. This indicates that the rental market in the capital has recovered from a pandemic lull, although it remains to be seen whether Omicron further dents the market in the months ahead.
However Andy Halstead, chief executive of HomeLet & Let Alliance, thinks the trend will continue.
He said: “2021 ended with an imbalance between supply and demand, and this is a trend that we are expecting to continue into 2022. This trend will almost certainly lead to a continuation of rental price growth as the year develops.
“We have again seen the government focus on the rental sector, with the Renter’s Reform Bill likely to abolish Section 21 – the clause which gives landlords the option to end ‘rolling’ tenancies with two months’ notice without giving a reason.
“We have repeatedly seen the government make things harder for landlords, who are already the cornerstone of the rental market upon which the UK relies so heavily. Increased legislation for landlords is putting the rental sector at risk, and the UK government must reconsider.”
In Northern Ireland rents have rocketed by 11.2% to £724, while the North West of England has seen growth of 9.2% to £844.
The South East of England recorded the lowest rental growth, at 3.5%. This brings the cost of renting to £1,123 a month in the region.
The East of England also saw relatively modest growth of 4.9%, bringing the average to £1,031.
The South-West saw the highest month-on-month price rise, up 2% to £983 per month.