UK rents rise in July as tenant demand remains high
Author: Rent Guarantor
UK rents have risen yet again in July 2019, with a recent survey showing higher rents across the whole of the UK and in London, even as house prices in the English capital stagnate. The further increase in average UK rents comes as demand continues to outstrip supply, with landlords increasingly cautious over making new investment into the sector amid continued changes to the rules for landlords to help protect tenants.
Brexit and political uncertainty also likely remains a factor in the slowdown in new rental instructions. Indeed, with so many new regulations and tax-related financial changes to contend with, more landlords are likely searching for ways to help guarantee their income to help ensure their investment continues to make financial sense.
UK rents rise again
A recent survey shows that the average rent across the UK rose to £959 per month in July 2019, a 2.3% increase from a year earlier. Looking at just London, the average monthly rent in the capital city was up by 3.1% from a year earlier to £1,665 in July – a 73.6% premium on the whole UK average.
Excluding London, meanwhile, the average UK rent was 2.2% higher at £794 per month, broadly in line with the UK’s inflation rate of 2%. The data also shows that rents were higher in all 12 UK regions when compared with July 2018.
Separately, the latest housing market survey from the Royal Institute of Chartered Surveyors, (RICS)supports the view that UK and London rents continue to rise. However, it adds details that show the rise is likely caused by still growing demand from new tenants, while the supply of new rental properties has fallen for a 13th straight quarter.
“Given the current imbalance between supply and demand, near term rental growth expectations were driven higher,” the RICS said.
Landlords work to protect their investments
The news that UK rents are on the rise and new landlord instructions are declining, comes as UK landlords are still contending with changes to industry rules and regulations. While the sector can continue to be a profitable one for investors, more care is required to ensure that is definitely the case.
Indeed, while deposits are now capped at four weeks rent, many landlords are taking a variety of measures to make sure their investment is protected. In some cases, that could result in a rise in the number of rent guarantor requests to ensure the rent on their investment property will definitely be covered.
If your landlord requests a rent guarantor, you may prefer not to ask for help from family members or close friends. That’s where Rent Guarantor can help. We provide an affordable service for tenants who need to supply a rent guarantor but don’t have close, UK-based family friends to help, or would prefer to use an alternative option. We consider every applicant on a case-by-case basis and have already acted for numerous tenant’s in this capacity.
Private rental sector (PRS) landlords are an important part of the UK’s growing rental market and while it’s important that tenants’ rights are protected, BTL landlord’s investment should be protected too. Rent Guarantor is here to help both parties and to support the UK’s PRS.