Rents in the UK are rising at the highest rate in decades, with the average asking price across the UK based on the available stock now standing at £1,829 per month, according to property consultancy TwentyCi.
This figure is significantly higher than market snapshots from other sources in the industry. This is an increase of £178 per month since Q1 2023 and £500 extra per month since Q3 2019.
An imbalance between supply and demand is cited as the main driver of the record-high prices. Property site Rightmove said the average rental property across Britain receives 25 enquiries from tenants to letting agents – that’s more than triple the number before the pandemic when there were eight enquiries on average.
The departure of many landlords from the market due to tax and regulatory changes has resulted in a decrease in available properties. Additionally, as interest rates rise and energy costs remain uncertain, some landlords had to pass on these increases to tenants through rent hikes.
Around 4.6 million households use the private rented sector in England alongside 340,000 in Scotland and 229,000 in Wales. The private rented sector is now the second biggest tenure of housing in England behind owner occupiers, making around a fifth of all households in the country.
Other than Scotland, all regions and major cities across the UK have seen a significant increase in the number of Let Agreed properties. The volume of Lets Agreed has risen by 2.8 per cent in the last year but has fallen 18% since the pre-pandemic year of 2019.
The English Housing Survey found private renters spend around a third of their household income on rent (rising to 41% in London). That’s more than 10% higher than the proportion paid by owner occupiers. And with this comes difficulties in paying rent; statistics show that renters are almost five times more likely to experience financial hardship than people who own their own home outright, according to ONS.
As of May 2023, around four in 10 renters reported that it was difficult to afford their rent payments while almost half of renters and mortgage payers said they had seen their payments increase in the last six months.
With the current situation in the rental market, it is inevitable that landlords will face the prospect of rent arrears. At Sinclair Taylor, we have a dedicated resources to support effective recovery of former tenant arrears which include trace and investigation services to locate the former tenant, prior to any debt recovery. Should you require assistance or advice on how to recover sums you are owed, speak to our experienced team today.
