Rents across the UK are increasing. And they are increasing rapidly. Demand is outstripping supply and it’s not unusual for people to offer over the rental price in a desperate attempt to try and secure a rental property.
The average rent in the UK at the end of April 2022 was £1,091 pcm (per calendar month), up 9.5% from the same time last year and up 1.2% from March. Closer to home in Lancaster, it was considerably lower however the average rental for an apartment is now £651 and a house £563. Some may think that this seems low, but please remember in the private rental sector, many of the rental properties are 2-bed homes. Many 3-bed homes are now letting for £750 upwards and we are seeing 4 bed detached homes easily achieving rents over £1000. Some of our larger new build homes are achieving between £1250 – £1600 pcm.
A big concern for many now is that the cost-of-living crisis could put downward pressure on rental growth. There are talks in the press re some people having to choose between paying heating bills, food or paying the rent…..
Currently, the imbalance between supply and demand continues to be the force behind rent inflation. At JDG we are still finding that we have over 30 applications on average per property – we can’t see that changing anytime soon given the shortage of rental homes in Lancaster.
So the good news for landlords is that rents are at an all-time high. The worry is will your tenant be able to afford to pay their rent in the future? If this is a concern of yours, we have a solution. Please ask us about our very affordable rent guarantee package. It will take any worries about not getting your rent out of the equation!
Thanks for reading
Josh