Tenants struggling with 'above inflation rent rises'
Rents now average £777 per month across the UK but with sharp regional differences, says tenancy referencing firm HomeLet.
It says that rents in Greater London rose by 6.7% over the past year and now stand at £1,224 per month.
By comparison, tenants in the North-East are paying an average monthly rent of £512.
Ian Fraser, MD of HomeLet, said: “Greater London has seen a greater annual increase in average rents than anywhere else in the UK.
“In contrast, our data shows that tenants living in the capital have only seen their income increase by an average of 0.8%. Therefore, when the 6.7% increase in renting a home is combined with the 2.7% increase in inflation, the budgets of tenants in the capital appear to be strained more than ever.
“Rents do tend to increase towards the summer months, and with an already dwindling supply of properties within the private rented sector, I believe tenants will face even higher increases than normal this year.
“The new ‘bedroom tax’ may also have an impact on demand, as people who face benefits cuts due to the number of spare bedrooms they may have, could move from social housing into the private rented sector. This increase in demand could drive rental amounts even higher, and therefore the construction of affordable new homes – both for rental and purchase – is vital to offer a much-needed supply boost to the industry.”