Rental levels reach new record high

Posted Posted in Experience Invest, property investment

Hello, and welcome back to the Experience Invest blog, in this blogpost we’ll be writing about a recent report that suggests rent for newly let properties in the UK has reached an all-time high. The team at Experience Invest are experts on residential property investment and we weren’t surprised by the latest figures that reveal in August there was a month on month rent rise of 2.5%. This is according to the UKs largest letting agent Countrywide. These figures show that rental levels are at the highest since the index began. Annual Growth The South West saw annual growth in rent for new let properties at 7%, the Midlands saw growth at 6.3%. Annual growth was recorded in all regions bar London.  45% of tenant’s renewing tenancies found their rent increased in August. In London and the South East over half of those renewing tenancies found their rent had gone up. Rents are rising driven by a lack of available housing stock and increased demand from tenants. This borne out by the 8% drop in the number of homes advertised to let in August. With fewer options available, more and more tenants are choosing to renew their tenancies and stay in their current rental property. Average rental rise Most tenants renewing will find that their rental costs have increased by 2.5% on average. The South West and the Midlands saw rents rise faster than anywhere else in the country. Competition for properties is also driving rents higher. It’s estimated that there are now nine tenants registered for every home available to rent, up from 7.5 this time last year.  It seems that more and more tenants are renewing tenancies rather than move, a small rise in rent is preferable to moving out and entering a highly competitive market. Londoners leaving […]