Oct

MARKET WATCH: Rents for new tenancies increase as demand booms across the UK despite Covid

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Rents on new tenancies went up for the third successive month in September across the UK, boosted by strong tenant demand.

Rental values in seven of the 12 regions monitored by HomeLet have risen by an average of 0.2% since August, with the average rent now £987 a month – up by 4% since June – according to its latest Rental Index.

The North East saw the biggest jump (2.2%) followed by Wales and the East of England (both 1.4%). Northern Ireland and the North West experienced the largest dips with -1.6% and -1.4% respectively.

Over the last year, HomeLet reports that the South West has seen the biggest increase in agreed rents at 6.6%, while rents in London have slumped -2.8% and there’s been a -2.4% drop in Northern Ireland year-on-year.

Chief executive Martin Totty (left) says landlords will be encouraged to see rents continuing to hold up, which he attributes to strong tenant demand with a slightly constrained supply and stronger sales market – possibly a short-term phenomenon.

Adds Totty: “Those landlords committed to the sector for the long term and having shown their willingness to confront the multiple headwinds of taxation change, new regulatory requirements and, in certain circumstances, longer notice periods to gain possession of their properties, may still be rewarded for their flexibility and their perseverance with reasonable returns on their investment risk.”

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