Tenants Hard Pressed as Rents Hit Record Levels

Average monthly rents in the UK rose to new record highs in the second quarter according to Findaproperty.com’s rental index – putting further pressure on would-be first-time buyers.

It’s no secret that mortgages are harder to come by – and without large deposits, many frustrated first-time buyers are turning back to renting, further increasing demand in the sector.

This growing demand has played a large role in driving Findaproperty.com’s rental index to its new record level. The index, which is based on the properties listed on the company’s website, saw a 2% rise in the three months to the end of June – pushing the average cost of renting a home to £867.

Thanks to the latest increase, the annual rise in the cost of renting a home has reached 4.4% – but the market is growing as well. Findaproperty.com found a 9.7% jump in the number of properties being offered for rent in the second quarter.

According the to index, the UK’s cheapest rents are to be found in the North East, where the average rent is £582 per month. Meanwhile, the West Midlands was the only part of the country where rents fell between the first and second quarters – dipping 0.3%.

Unsurprisingly, London was found to have the highest rents, with Findaproperty.com putting average rents at a massive £1,979 per month for the capital. However, they did add that this figure was skewed upwards due to a broader sampling of the market, which included rents across Zone One, and taking into account asking prices instead of negotiated prices.

Samantha Baden, an analyst at Findaproperty.com, commented: “Demand for rented property is soaring across the UK as people find they can’t afford to buy. Average rent of £876 is the highest on record and we are now seeing more rental properties coming onto the market as landlords look to take advantage of the increasing returns.”

Moneyhighstreet comments: “Young people and first-time buyers are facing a tough market as rising rents mean less is left over to save for a deposit on a new home. This is forcing many to keep renting and is likely to put pressure on the housing market.

“If you’re a first-time buyer, however, don’t give up. There are measures that can help you. The Government’s FirstBuy scheme could help you secure a mortgage even with a low deposit, while other products like the new 95% mortgage from Saffron Building Society helps renters by assessing their creditworthiness based on their rental history.”