Rental Prices Rise Again in the UK, Highlighting Demand and Potential for Investors
Published by Magnate Assets on
Jun 14, 2023
The UK rental market continues to experience upward momentum, with new data revealing an increase in rental prices across the country. London, in particular, has reached a historic high in average monthly rent. The latest figures indicate the growing demand for rental properties, presenting an attractive opportunity for investors in the real estate market. Magnate Assets advises landlords and investors to consider Rent Guarantee insurance to mitigate risks associated with rental payments in these dynamic times.
UK Rental Price Overview:
According to HomeLet, the average rental price in the UK rose by 1.2% from April to May, reaching £1,213 per calendar month (pcm). London's rental market witnessed an even more significant surge, with the average rental price in the capital hitting an unprecedented £2,039pcm. Excluding London, the average rent in the UK stands at £1,016pcm, representing a 1% month-on-month increase.
Scotland experienced the highest monthly increase in rental prices, with average rents rising by 2.6%. On the other hand, the North East, known as the UK's most affordable rental area, saw rents decline by an average of 2% compared to the previous month, resulting in an average rent of £632 pcm.
Insights from Andy Halstead, HomeLet & Let Alliance CEO:
Andy Halstead, CEO of HomeLet and Let Alliance, acknowledges the persistent high rental prices and the associated risks for both tenants and landlords. He urges landlords to consider Rent Guarantee insurance, particularly as the likelihood of tenants facing challenges in paying their rent grows with each passing month.
Halstead highlights the continued strength of the London rental market, with average prices reaching a historic high of £2,039pcm. This indicates a scarcity of rental properties to meet the demand, leading to fierce competition among prospective tenants. He also notes that while demand varies by location, the broader trend indicates a shortage of rental properties across the country, potentially driving prices higher in the coming months.
The recent increase in rental prices in the UK, including the record-breaking average in London, demonstrates the sustained demand for rental properties. This presents a promising opportunity for landlords and investors looking to capitalise on the rental market's growth potential. To mitigate risks associated with rental payments, Magnate Assets advises landlords to explore Rent Guarantee insurance options. As demand continues to outstrip supply in many areas, rental prices are expected to rise further in the coming months, making the UK rental market an attractive prospect for investors seeking stable returns.