Rental growth seems to be stabilising, says lettings agency Hamptons.
It says the cost of a newly let home in Great Britain rose to an average of £1,337 pcm in May 2024, 6.3% or £79 pcm more than the same time last year. This marked the third month in a row where year-on-year increases averaged around 6%.
Meanwhile, rental growth for tenants renewing their contracts continued to rise, with average renewal rents up 8.8% year-on-year in May from 8.3% in April.
The slowing of national rental growth for newly let homes has been primarily led by London, where the pace of annual growth fell to 3.9% in May 2024, the lowest rate since November 2021.
Inner London was once again the only area to see rents fall on an annual basis (-2.3%), for the second month in a row. The average tenant here agreed to rent a new home for £3,003 pcm in May (table 2), the lowest level for 14 months and £171 pcm cheaper than in November 2023 when rents in Inner London peaked. There were 20% fewer new tenants looking to rent a home in Inner London compared to the same month last year, the largest annual fall in any region.
Smaller homes are seeing bigger rent rises than larger homes.
Hamptons says this reflects affordability challenges that are pushing tenants in search of more affordable homes. May 2024 marked the first time in 11 months when rents for newly let one-beds (7.6%) rose faster than two-beds (6.2%).
Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions.
If any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals, then the post may be deleted and the individual immediately banned from posting in future.
Please help us by reporting comments you consider to be unduly offensive so we can review and take action if necessary. Thank you.
Average annual rental growth across Britain hit 8.0 per cent in...
Average rents for one-bed rental properties continued to grow during September,...
A veteran lettings agency chief says future economic growth in part...
.jpg)
Grainger, the Stock Market listed corporate landlord, has been targeted by...
The vast majority of tenants are unaware of new laws introduced...
Despite the recent tax crackdown, buy-to-let continues to look an attractive...
The property market had enjoyed a boost thanks to the outcome...
As a seasoned landlord, you've likely witnessed the UK property market's...
Managing rental properties, whether you have a few or a dozen,...
Congratulations on taking the leap into becoming a landlord! Property investing...
There wasn’t much by way of good news in the Spring...
Twenty twenty-four is a pivotal year for landlords in the Private...
An advisory service is warning landlords to heed the lessons from...
Campaigning charity Shelter claims social rents are 64% more affordable than...
Local media in the Midlands say another Labour council is set...
.jpg)
Labour’s manifesto, just released, makes a pledge to enact the “immediate”...
Nigel Farage has pledged that his Reform UK party would reverse...
Labour has stepped up its programme clamping down on what it...
Who are you and what does it say on...
Who are you and what does it say on...
Who are you, and what does it say on...
Join the conversation
Jump to latest comment and add your reply
My 4 bed is a lower rent than my 3
London is a joke
My rents still haven't caught up with increased costs or market rates, so they will have to keep increasing until they do.
Mine too!
My rents haven't gone up anywhere near enough to cover all the extra utility costs since the small utility companies went bust a couple of years ago or the increased mortgage interest costs from last year's product switches or the associated Section 24 tax.
It certainly helped that the LHA rates went up 18% this year. It's still hundreds a month below market rent for those houses but it has enabled me to use a lighter touch for my self funding tenants. If I increased theirs much more they would move out and I would have a void. I already know the level of demand at varying prices from naturally vacant similar rooms.
I think the lesson I have learnt from all of this is to increase rent by something every year just so tenants aren't surprised when it happens. I was certainly guilty of not increasing rent for good tenants for year after year and when I finally did go for an increase they were very upset.
So for now my policy will be LHA tenants will see rent increases at the same percentage level Social Housing rents go up each year even if LHA is frozen. They can always apply for a DHP. Self funding tenants will have increases of around £15 to £50 per month. New lets will be whatever the market rent is.
Same here. Due to tenant turnover I could just increase rents when the tenants left. Now they are staying longer (one tenant had the same rent for 6 years) and our costs are increasing so much more I am increasing the rents annually around 10% until I have caught up to nearer market rates.
Small annual rent increases is the best way forward. I am doing rent increases on all my portfolio in expectation of Labour policies. In the past seldom increased rent to good tenants with the result rents fell behind.
Agree, if you increase rents every year the tenants will expect it and won't be shocked at the rise.
Please login to comment