Rents: we’re nearly at the affordability ceiling, warns HomeLet

Rents: we’re nearly at the affordability ceiling, warns HomeLet


Todays other news


Average rents across the country have risen just three per cent in the past year and typical tenants are staying an unusually-long 28 months in their properties – indicating that the rental affordability ceiling might be close, according to HomeLet.

A tenant signing up to a new tenancy in October will have paid an average of £902 per month – that’s three per cent higher than a year ago.

But the rate of growth is slowing as in March this year the annual rise was 4.5 per cent.

The contraction in the pace of rental increase is most marked in those areas of the country where rents were rising most quickly until recently.

In Greater London rents on new tenancies rose by 2.5 per cent in the year to October having been rising by 7.0 per cent annually some 12 months ago.

In the south east rents rose 2.7 per cent in the year to October compared with 4.3 per cent this time last year.

“We know wage growth has lagged rental price inflation and it could be that we are approaching an affordability ceiling whereby landlords cannot attract tenants who can afford higher rents” according to HomeLet chief executive Martin Totty.

Share this article ...

Join the conversation: Login and have your say

Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions. All comments are screened using specialist software and may be reviewed by our editorial team before publication. Letting Agent Today reserves the right to edit, withhold or delete comments that violate our guidelines, including those that harass, degrade, or intimidate others. Users who post such content may be banned from commenting.
By commenting, you agree to our Commenting Terms of Use.
2 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Recommended for you
Related Articles
Demand is roughly static but instructions from landlords are falling...
Two amendments are being put to the Renters Rights Bill...
David Smith Weill be answering agents' questions...
The targets are high cost and must be met by...
The Welsh Government is backing the call for a 'compensation'...
There will be a greater emphasis on digitisation....
A consultation document is being released today....
Recommended for you
Latest Features
Andrews Property Group is under charitable ownership...
New tenancies in England and Wales are at their lowest...
The Scottish system would differ from the UK system in...
Sponsored Content
Tenants want a place they can call home—somewhere comfortable, safe,...
Letting agencies face the dual challenge of keeping both landlords...

Send to a friend

In order to send this article to a friend you must first login. Click on the button below to login or sign up.

No one likes pop-ups ...
But while you're here