LETTING & ESTATE AGENT

Rents Keep Rising in UK

Rents Keep Rising in UK
The HomeLet Rental Index has revealed that the cost of a new tenancy in the private rentals market in the UK rose by 4.8pc from December 2015-February 2016 against the same period a year earlier. The typical rent for a new tenancy now stands at £744pcm. house_money2 480x300px The figure, excluding Greater London, shows that rents on new tenancies are increasing much faster than inflation across most of the UK. The rental price growth was led by London (7.7pc), the East Midlands (6.7pc) and the South East (6.5pc). Meanwhile rents fell by 3.2pc in the North West and 2.6pc in the North East. Rents in London are £1,521, and fall to £636pcm in the North West and £519pcm in the North East. Martin Totty, CEO of HomeLet's parent company Barbon Insurance Group, said: "We continue to see the effect of the imbalance between demand and supply in the private rental market. Average rents are still rising, and the cost of a new tenancy is rising faster than general inflation." Fewer single occupants are renting properties, down from 67pc in 2008 to 33pc today. Two-tenant agreements have risen from 28pc to 52pc, and three-tenant agreements are up from 5pc to 15pc. Totty said: "Landlords are letting out homes to more families and people are managing these higher rents by meeting the costs as joint tenants."