A leading figure in the lettings industry has succinctly captured the persistent rental market frenzy with the phrase – “the craziness persists.”
Andy Halstead, CEO of HomeLet & Let Alliance, offered this comment in response to the release of HomeLet’s most recent rental market index.
Halstead shares, “The average rental price for July has now reached a staggering £1,243, marking an unprecedented peak. This new record, coupled with every region in the UK experiencing a monthly price hike, is a cause for concern for both tenants and landlords.
“We are steadily approaching a scenario where a significant number of prospective tenants simply cannot afford to live, which spells a perilous situation for the market.”
“It should be mentioned that sky-high rental prices do not necessarily translate into record profits for landlords! The inability of landlords to depend on rental income presents a dreadful circumstance. In these times, taking out rent guarantee insurance is increasingly becoming the only means by which landlords can sufficiently safeguard themselves, and we strongly advocate for it.
“In recent times, the North-East has diverged from the rest of the UK, with minimal price escalations. However, even the North-East has witnessed a 1.8 per cent rise to £636 pcm in July 2023. The nationwide surge in rent and mortgage rates confirms that no one is benefiting – when will this be halted?
“On the opposite end of the country, it seems London’s average rental price exceeding £2,000 pcm has now become commonplace, a threshold that was surpassed for the first time just under a year ago. Now reaching £2,109 pcm, London’s frenzied rental market is reflecting the UK overall, with no indication of decelerating – the pandemonium persists!”
The statistics indicate that the average rent across the UK has now reached £1,243 pcm, experiencing a rise of 1.1 per cent since the previous month.
If one leaves out London, the mean rent is £1,037.
Scotland has achieved its peak average rent, standing at £973 pcm.
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