Today’s rental market is unsustainable according to a leading industry supplier.
HomeLet’s latest monthly market snapshot says the average rent in the UK is now £1,127 per calendar month following a 1.3 per cent rise in the past four weeks. When London is excluded, the average rent in the UK is now £948 pcm.
Average rents in London continue to rise, to a new average of £1,868 pcm - a 1.2 per cent rise in recent weeks. Meanwhile Scotland saw the largest monthly variance, with rents 3.4 per cent higher than last month
Andy Halstead, HomeLet’s chief executive officer, says: “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 per cent 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 per cent for landlords based in London.
“The same survey revealed that four out of five renters 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.”
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