The average UK monthly rent has risen to over £1,000 for the first time, according to new data.
Figures from HomeLet revealed that across the UK, the average rent now stands at a record £1,007 per calendar month, up 5.9% on the same time last year, and up 7% on this time two years ago.
London has seen its first price for over a year, with a 1.5% increase to £1,607 ppm.
Despite this rise, rents in the capital remain lower than the pre-Covid average: the average rent in June 2019 was £1,611.
Outside of London, the average UK rent is 8% higher than last year, at £861.
South West England saw the highest annual price rise, with rents up 10.5% from this time last year, and a 12.6% increase on pre-Covid levels, to a current average price of £948 ppm.
In the past month, Scotland has seen the most significant rise, with the average price rising 4.4% to £738 pcm in June.
North East was one of only two regions to see a month-on-month price dip, falling by 2.3% compared to last month to an average of £547.
“Some people might be shocked to see the average UK rental price tip over the £1,000 mark, yet supply and demand dynamics will only continue to drive rental prices upwards for the rest of the year, and we’ll see more records broken in 2021,” Andy Halstead, HomeLet & Let Alliance chief executive, said.
He said the rise in rents was a reflection of increased costs for landlords and a fall in stock levels.
“It’s a continuation of the theme that we’ve seen for many years, with landlords being penalised by higher taxes and increased complexity in obtaining possession of their properties,” Halstead said.
“In simple terms, increased costs for landlords mean increased costs for tenants. Some landlords have exited the market whilst the stamp duty holiday has stimulated the sales market, impacting the stock level. These are all factors driving an increase in rental values for new tenancies, which are way above the rate of inflation.
“The private rented sector plays a critical role in the UK’s housing market. As restrictions begin to ease, the flexibility provided by rentals will be crucial to mobility across the UK and as a means to access affordable housing that fits the varying needs of a diverse range of tenants.
“The sector works best when there’s a mutual balance between tenants, landlords and letting agents. The Government can’t treat the rental market as an afterthought. Policies that solely focus on homeownership will only deepen the issues in the UK’s housing market.”