Private rents rising above inflation with growing demand

Average private sector rents across the UK rose at inflation busting rates in December, with rises of almost 10 per cent being recorded in some areas of the UK fuelled by a strong demand from tenants.

HomeLet’s Rental Index for December showed that rents rose last year in all 12 of the UK regions covered by the research. While rents rose by 3.5 per cent overall, they rose fastest in Wales and the North West at 9.7 per cent and 8.3 per cent respectively.

The West Midlands saw rents rise by 1.6 per cent while the South West was the only region to record a below inflation rise of 0.8 per cent. In cash terms, the average monthly rent reached £953 in December, but with London excluded, the average fell to £793.

HomeLet attributed the strong rental increase to several factors, including increasing costs to landlords, but said growing demand from tenants (which showed no signs of slowing down) was the key factor.

Chief executive Martin Totty noted that continuing disincentives were pushing more landlords out of the market and this could further restrict supply and push up prices in 2020.

By Patrick Mooney, Editor