UK rents rise by 8.5%

Investors are receiving more income from tenants, as UK rents have increased by 8.5% year-on-year, the Hamptons Monthly Lettings Index for June has revealed.

Indeed, four of the 10 fastest monthly for rental growth over the past decade have been since the start of the pandemic.

The biggest increase took place in the South East (15.9%), followed by the South West (15.1%) and the East of England (11.1%).

Rents increased in every region, with the exception of Inner London (-16.5%).

Outer London (9.4%) rents are still rising, suggesting that tenant demand is predominantly in the more affordable areas of the city.

There’s a lack of stock to meet this demand, as there were 46% fewer homes available than two years ago.

Aneisha Beveridge, head of research at Hamptons, said: “Over the course of the pandemic, Inner London landlords have suffered more than investors anywhere else in the country. But in recent months rental growth here has changed course and is now on an upward trajectory. We are forecasting that rents in Inner London will return to pre-pandemic levels within 12 months.

“That said, and despite a recovery, rents in Inner London are likely to remain lower than they would have been had the pandemic not happened. A relatively buoyant recovery has ensued as restrictions have been lifted, but some scarring is likely to remain as tenants become less closely bound to their office desk and international travellers remain in short supply.

“Nationally, the last 12 months have seen five years of pre-pandemic growth squeezed into a year. Rents are rising at such a pace that monthly rental growth figures could, in more normal times, be mistaken for annual ones. While this growth is underpinned by a lack of stock, it will ultimately be tapered by affordability.”

Comments 9

  1. Just watch rents if the Govt bring in even more Anti-PRS measures like a National Registration scheme.
    Govt don’t know the basic rule of Business, – Costs get passed onto the end-user.
    This Govt and Rogue tenant support groups has cost all Tenants a lot of money in rental increases over last 10 years.

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