Private rents rising at highest rate this year

THE cost of renting a private property grew by 2.4% in August, according to new figures, the highest rate of growth in the sector this year.

British families are now paying out an average of £939 per month for accommodation, the HomeLet Rental Index found.

HomeLet, which offers specialist insurance for rental properties, said that rents in London have reached their highest since the company launched the index in 2009. Rents in London rose 2.5% in August following three months of decline, reaching an average of £1,609. It is the first time rents in London have been above and average of £1,600.

Across the UK as a whole average rents rose by 2.4% in August compared to the same month last year.

It is the highest rate of annual inflation since November 2016 and the average monthly rent now stands at £939, compared to £916 in August last year.

If London is excluded from the figures, the average rent across the UK is £776, up 2.3% year on year.

Rents rose in 11 out of the 12 regions of the UK.

They rose the fastest in the SouthWest of England, up by 3.9% compared to August 2016, while over the same period rates in Northern Ireland rose by 3.7%. The only place to see a decline in rents was the SouthEast, which fell by 0.2% on average.

HomeLet’s chief executive Martin Totty said: “Whether recent strengthening in rents achieved, seen across all regions, is driven by more robust demand or by some restriction of supply is hard to judge. Either way, landlords will only be encouraged to invest in property over other assets if they’re convinced they can achieve reasonable returns.”