According to a survey conducted by Landbay, ‘large parts of the UK have a shortage of homes to let,’ demonstrated by a strong lettings market, even in the cold winter months. Results show that the average monthly rents in 2015 were £1,280, which is up 3.8% from 2014.
In fact, the shortage of homes to let has reached such a high level that rents are now beginning to outstrip wages. Rent grew twice as fast as wages, which climbed 1.9% last year, with the northeast and northwest the only two regions where wages overtook rental increases.
So what’s the connection between rents, wages and a shortage of homes to let? John Goodall, Chief Executive of Landbay explains: ‘Rents often track wages as consumers with more pay compete for the most desirable rental properties, but the fact that rents are outpacing wages is a clear sign of the shortage in properties to rent as large parts of the UK face an acute housing shortage.’
Average rent in UK grew – did London see the biggest rise?
Commuter hotspots near London were indeed amongst the top risers – rent in Luton had the most growth at 11.1%, with Medway and Thurrock following at 8.8 and 7.3% respectively. As a result, Landbay claim this could mean many of London’s workers could now be priced out of these areas.
However, the highest increase in the county wasn’t London, which saw rent rise by11%. This came further afield in Bristol and Brighton, where average rent increased by a huge 18% in 2015, by far the biggest hike in the country.
The results show that last year there was a narrowing of the rent inflation gap between London and the regions.
What type of properties saw the biggest rental increase?
Family homes look to be in demand. Up 5.2% to £1,484 in 2015, three bedroom properties saw the biggest increase in the average price of rent.
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