Rents rising at fastest pace in 13 years

The BBC has recently reported that rents are rising at the fastest pace since 2008 according to figured published by property website Zoopla.

Private sector rents in the UK were 4.6% higher in September than a year before at £968 per month on average - the strongest growth seen in 13 years.

Outside of London, rents were up by 6%, marking a 14-year high, according to the Zoopla figure. Zoopla said it was partly down to higher demand amid ‘limited supply’.

Rents are up most in the South West (9%) year-on-year, followed by Wales (7.7%) and the East Midlands (6.9%).

Propertymark however, (on which our co-Director Russell Griffin sits as the Midlands Regional Executive), reported last month that the West Midlands was the “topmost region with tenant demand” and overall, the number of new prospective tenants was the highest on record for the month of September.

The figure reported in September's Propertymark Private Sector Report (PSR) remains the highest figure on record, beating September 2020’s previous record of 82 new tenants per branch.

Regionally, the West Midlands had the highest number of new tenants registered per branch with an average of 106. This number was lowest in Northern Ireland where there was only an average of 42 new prospective tenants.

Zoopla said demand for rented properties is still outstripping supply, putting upward pressure on prices.

Grainne Gilmore, head of research at Zoopla, said that the popularity of homes in higher price bands was also contributing.

"Households looking for the flexibility of rental accommodation, especially students and city workers, are back in the market after consecutive lockdowns affected demand levels in major cities.

"Meanwhile, just as in the sales market, there is still a cohort of renters looking for properties offering more space, or a more rural or coastal location."

By the end of next year, rents are forecast to rise by another 4.5%.

If you are a landlord with us, or have a property you are considering renting, please talk to our award-winning lettings team here at Samuel Wood so we can discuss what this news and the currently rental market value is for your property.

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