UK rental prices soar to a three year high
The average rental price of a UK property increased by 2.2 per
cent in July to £767 – the highest it’s been for
over three years, reveals HomeLet, the tenant referencing and
specialist lettings insurance company.
Meanwhile demand for rented properties has also boomed, with 3.4
million households now privately renting, an increase of one
million since 2005. In addition, the HomeLet Rental Index shows
there’s been an increase in the number of tenants aged
between 26 and 35 who were previously living with a relative
– which could be another sign of people feeling the squeeze
during the recession and staying at home for longer.
John Boyle, Managing Director of HomeLet, said, “The latest
figures from the Land Registry's House Price Index show an annual
price decrease of 2.5 per cent of average property value in England
and Wales however, people are still struggling to purchase their
own home due to tough mortgage availability.
“Although the increase in rental figures is a sign of an
economic struggle by the UK population as people continue to
experience difficulties in purchasing their own home, property
investors and landlords could now take advantage of the increase in
available properties and purchase more quality buy-to-let houses.
This is therefore a very encouraging sign for the lettings
HomeLet said there had been a 16 per cent increase in the –
admittedly small number– of people aged between 66 and 70 who
have sold their home and become tenants over the past 12 months.
The firm said 1,074 people had swapped home ownership for rental
The survey also found that 43 per cent of new tenants in July aged
over 66 were previously living in a home they owned, compared to 37
per cent in July 2010. The firm said the fact that about 2 million
pensioners in the UK are living in poverty
suggests older people are selling their homes to release equity to
fund their increasing living costs.
John Boyle, MD of HomeLet, said: "Pensioners are already feeling
the pinch with the spiralling costs of fuel, energy bills and basic
food. Combined with a reduction in income, old people are
increasingly struggling to pay to live through their retirement.
This suggests the number of pensioners having to sell their home to
move into rented properties could increase even more over the
HomeLet’s Rental Index has access to the largest volume of
data on agreed rental amounts in the UK and includes data gathered
from over 3,000 letting agents – more than any other report
on the market.
The HomeLet figures form part of the group's regular Rental index
survey, which gathers data on agreed rents from more than 3,000
letting agents across the UK. The latest survey indicates that,
after increasing by just 0.3 per cent in June, the average
UK rental price in July increased by 2.2 per cent to £680,
rising to an average £1,154 in greater London.