Landlords and tenants are benefiting from steady figures in the rental market, according to new figures, but Brexit and other economic issues remain a concern that could affect the situation.
The new Rental Index for September from property referencing firm HomeLet reveals that average rents across the UK rose by 1.7% compared to the same month a year ago.
The average rent for a month in the UK now stands at £943, while in London the average figure is £1,640. Excluding the capital, it costs £780 to rent on average.
Annual figures show that over the year rents rose nationally by an average of 2.1%, with rents in every region apart from the north-east going up. Scotland reported the largest rise with a figure of 5.6%.
“The current steady growth within the private rental sector suits the needs of both tenants and landlords,” said HomeLet chief executive Martin Totty.
But concerns such as Britain’s departure from the European Union next March and house prices mean that landlords are weighing up their options.
“Should landlords change their stance and begin to exit the market, therefore reducing the supply of rental properties, there is a possibility that rental prices could rise,” added HomeLet’s CEO. “At this stage there is no indication that the demand for rental properties is going down.”
HomeLet’s survey of landlords, to be published in full in November, showed that 36% see Brexit as their number one issue at the moment. This tallies with a recent survey by the Royal Institute of Chartered Surveyors, which also found uncertainty over Brexit to be the main theme for its members.
“The results suggest that while landlords are not planning to leave the market at this stage, uncertainty over the wider economic picture – especially when Brexit is added into the mix – could easily change this,” added Mr Totty.