Rents are set to continue rising as landlords potentially depart from the market, according to HomeLet’s rental index.
The average rent in the UK has reached £1,127 per month, up 1.3% from last month
Rents in the capital have risen to a new average of £1,868 per month – an increase of 1.2%
Meanwhile Scotland saw the largest monthly variance, with rents 3.4% higher than last month.
Andy Halstead, chief executive officer of HomeLet & Let Alliance, said: “This month’s figures paint a picture of a rental market that is struggling to meet the needs of renters or landlords, with spiralling prices a bad sign for both parties.
“One of the main factors leading to rising rent prices is a lack of supply on the market to match demand. This problem could worsen if landlords continue to leave the market, leaving a rapidly shrinking supply of available rental properties.
“The issue is reflected by the overall findings from our recent Landlord Survey, where 18% of all landlords that we spoke to said that they expect to reduce their portfolio or leave the sector entirely in the near future – this figure rises higher to 22% for landlords based in London.
“The same survey revealed that four out of five renters (78%) are worried about how they will pay their rent. A market too volatile for landlords to rely on receiving rents due, and properties too expensive for renters to cope with, is clearly unsustainable.”