The chief executive of a respected industry supplier is warning that the lack of supply is making the rental sector “more unstable” for tenants and landlords alike.
Andy Halstead, chief executive of HomeLet and Let Alliance, makes the warning alongside the release of his company’s latest rental market snapshot.
That reveals that the average UK rental price is now £1,229 pcm, increasing 1.3 per cent from last month.
Greater London sees a massive 1.9 per cent month-on-month jump to an all-time high of £2,077 pcm. Excluding London, the average price of rent in the UK is £1,027, up by 1.1 per cent.
Scotland saw the highest monthly increase with rental averages rising by 5.5 per cent monthly, the highest out of any region, leading to the highest ever average price recorded in Scotland.
Meanwhile the UK’s cheapest rental area, North East England, drops a further 1.1 per cent from last month to £625 pcm.
Halstead says: “With another increase and UK prices now averaging at £1,229, it is clear that there is a continued risk for tenants and landlords alike, with a very real likelihood that tenants up and down the country might struggle with paying their rent. We again urge landlords to consider rent guarantee insurance to protect themselves, if they have not invested already.
“Scotland in particular has seen a soar in the rental market, with a 5.5% monthly swing showcasing an all-time high average rental price of £940.
“The capital shows no signs of slowing down either, with yet another record price recorded in Greater London. It is not so long ago that we were talking about London breaking the £2,000 pcm barrier for the very first time – a big leap to £2,077 pcm is a sign of how a lack of available rental properties is pushing prices up for tenants and making the private rental market more unstable for tenants and landlords alike.”