UK Private Rent Surge Predicted by Agents

Letting agents predict private rents will keep rising despite affordability issues for tenants.

One in three letting agents say tenant demand has increased over the three months to October, and 53 per cent expect rents to continue rising.

The Royal Institution for Chartered Surveyors (RICS) - a letting agent trade body - carried out the survey and projects rents will increase by 4 per cent over next year even though landlord instructions have dropped by a fifth.

Meanwhile, the Office for National Statistics has released the latest official rent data for the year to October 2023.

The ONS figures show private rents were up 6.1 per cent in the year - a month-to-month increase of 0.4 per cent.

How rents have changed where you are

The region with the most significant rent increase was London (+6.8%), which posted the highest annual rise since records started in January 2006. The lowest was in the North East (+4.7%).

Source: ONS

Rents hit record-high

Tenant reference agency Homelet monitors private rents and publishes performance figures based on customer data each month.

Homelet pegs the average UK rent at a record £1,283 a month - up 0.55 per cent from September and 9.56 per cent more than a year ago.

The firm says rents have increased in every region. Average rents in the capital have hit a record £2,192 a month, the highest in the UK, while the cheapest private rent averages £677 a month in the North East.

“Rent prices in our country have increased by almost 10 per cent in just a year, and the last few months account for that huge surge,” said CEO Andy Halstead.

“We’ve been watching rent prices creep up every month and know this is an unsustainable future for tenants and landlords alike. Renters are being priced out, leaving the homeowners with no one to fill their vacancies.

“We need to see an end to these soaring prices, and fast, before we have a full rental crisis.”

Top 10 buy-to-let hotspots

Rent research by mortgage lender Molo has spotlighted the areas likely to recoup the cost of a buy-to-let property quickly.

The lender has analysed average house prices and rents to rank the ten best places to buy a private rented home.

“Avoid London,” said a spokesman. “Property in the capital takes between 25 and 27 years to buy itself back.”

Source: Molo