There is a recent study provided from Sequence that proves
there is an increase in rents across the board. This trend has been noticed in
several different agencies that OnlineLetting Agents has been following up on, especially since the trajectory of
the trend will ultimately affect the market in the future. The strongest
letting agency chains are raising the rents along with the 300 other strongly
led agencies as well. The top agencies that are raising the rents are BarnardMarcus, William H. Brown, and Fox & Sons. Among these popular letting
agencies, this will undoubtedly dictate the renting market for the future to
come, and is likely that this trend will be getting even more exaggerated as
time passes.
Statistics
What the researchers have found is that the rental data has
risen 1 percent in the past month. The average rents cost around 762 pounds per
month, and are expected to continually rise as well. This has also affected a
more dramatic rise for new tenants, with them facing 20% increases of annual
costs that did not exist in previous years. This theme will change the
landscape of the renting business and has also affected whether people are
opting to rent or buy a property.
Not all of the renting prices have been consistent, however.
London is one of the most affected markets that has seen the largest rises in
rent prices in recent history. Currently, the average rent is up to 4% increase
of an annual payment. In addition, the average rent in London is 1,427 pounds
per month, which is at an all time high and is not expected to see a reduction
any time soon. In addition to the inflation of prices, the number of new
tenants is up 37% as well, which means in London people are renting more than
ever.
Driving the Market
The simple laws of supply and demand are what is dictating
the rise in the market rental prices. Currently, there is an average of six
prospective tenants that are fighting for each rental in the London capital.
This is one of the most competitive markets in the world, and it seems like
with foreign investors this competition is only getting fiercer.
There are simply no new rental properties that are coming
onto the market, which makes it difficult to keep up with demand. For this, it
is simple for the agencies to simply raise the prices of rent in order to reap
revenues and stoke an increase of earnings for the agencies as well. The growth
in rents is not seemingly keeping people from wanting to rent flats in the
capital, and while it is most obvious in London this is a trend that has taken
a hold of the majority of the UK at varying levels. The days of sensible rent
has seem to enter a new phase in which inflation is the norm and demand
continues to grow.