Landlord Latest: UK average rents break £1,000 mark

Looking back on the first half of 2023, all regions across the UK are experiencing increasing rental prices alongside the ongoing pressures from tenant demand.

Let’s take a closer look.

What’s the latest news in the lettings market?

The average rent across the UK is £1,199 PCM, breaking the £1000 mark outside of London. Additionally, April saw the highest monthly percentage increase with 1.3%, while the number of tenants registering in branches is also up by 24% when compared to same time last year.† With rental stock remaining low and continued demand from tenants, pressures on the rental market remain, with an average of 16 prospective tenants registering per available property.†

All regions experienced year-on-year and month-on-month increases in rental prices, where Scotland had the largest year-on-year change, with 12.1%, closely followed by Greater London with an 11% increase and Wales with a 10.5%.‡ Although there have been considerable increases in rental costs, when comparing the percentage of income spent on rent with the same time last year, the percentage change is fairly small, ranging from -1.9% in Wales to +1.4% in the North East.‡

On the 17th May, the Government introduced the Renters (Reform) Bill to parliament. It aims to deliver “safer, fairer and higher quality homes in the private rented sector for tenants and landlords”.*** For example, among the many topics, the bill introduces the abolishing of no-fault evictions, but provides recourse for landlords to remove anti-social tenants.^ As previously mentioned, the aim of the bill is to provide and ensure a fairer rental process for both tenants and landlords, and will need to pass through parliament before becoming law. More changes and debates are bound to be discussed, so stay up-to-date on gov.uk, or read more about it here.

Increased confidence reflected in the housing market

According to Rightmove, house prices in May experienced a 1.5% average annual price increase, while Halifax reported a 0.0% change. Month-on-month, this was the biggest increase in 2023, going up by 1.8% (+£6,647) since April.* This is 0.8% above the usual historic average price increase the housing market experiences in May, providing buyers and sellers with further confidence in the property market.

First-time buyers and second steppers are still leading the way in the purchasing of homes, lying 6% and 3%, respectively, above 2019’s more normal market statistics.* On the whole, market conditions are improving, which is reflected in increased buyer demand (+3% in comparison to 2019), buyer’s and seller’s increased price confidence, and the growing number of sales agreed. However, it’s important to keep in mind that top-of-the-ladder buyer demand is currently following a slower trend, lying 1% below 2019’s rates.

Sources:
*https://www.rightmove.co.uk/news/house-price-index/ and https://www.halifax.co.uk/media-centre/house-price-index.html
***https://www.gov.uk/government/news/government-introduces-landmark-reforms-to-deliver-fairer-private-rented-sector-for-tenants-and-landlords
^https://www.gov.uk/evicting-tenants/section-21-and-section-8-notices
†https://www.propertymark.co.uk/resource/housing-insight-report-april-2023.html
‡https://homelet.co.uk/homelet-rental-index
MKT/UKON/230523

Landlord Latest: UK average rents break £1,000 mark

Looking back on the first half of 2023, all regions across the UK are experiencing increasing rental prices alongside the ongoing pressures from tenant demand.

What’s the latest news in the lettings market?

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Increased confidence reflected in the housing market

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