Rent in the UK has set yet another record, with rates paid by private tenants jumping by four per cent in August. Rents hit a national average of £779 during the month, which is their highest in 11 years, and also represents an 11 per cent year-on-year increase.
According to figures from the latest Sequence lettings index, the rental market is very much on the up, with the number of new agreed tenancies hitting a three year high. Across the UK, tenant demand is solid, with new registrations in August rising two per cent on the month before and 11 per cent on the previous year.
This trend was particularly strong in London, with the number of tenants increasing five per cent on July 2013.
It was also observed that people were renting for longer than they used to. The average length of a tenancy in London was seen to increase from 12 to 19 months, as people struggled to buy homes due to increasing prices.
While rental demand is undoubtedly soaring, supply of such accommodation does not appear to be keeping up, with the number of new properties available to rent being flat month-on-month. Experts predict this could lead to further pushing up of rental prices.
It was also found that an increasing number of buy to let mortgage applications were submitted, with this figure rising by an impressive 31 per cent over since the same time the year before.
In the UK, both the number of viewings and new tenancies have hit their highest level since 2011. It is worth noting, however, that the number of new tenancies with a rise of eight per cent outpaced the number of viewings which were up by two per cent. This is a sure sign of the competition in the rental sector.
- Wednesday 25 September 2013