Renters feeling the strain

The cost-of-living crisis is likely to be felt by most Britons this year, with increases in energy and food costs and the increase in National Insurance Contributions from April. In addition, renters need to add in the rising cost of renting a property, with the average price for a new tenancy up by 8.5% from last year1.

Average rental values

Recent figures show the average cost of renting in the UK is now £1,064 per calendar month (pcm). Every region has seen an increase in costs, the greatest being in London, where rentals average £1,760pcm, 12.6% higher than January 2021; outside London the average rent is up by 6.9% year-on-year at £897pcm. In Scotland, the average rent is £747 pcm, up 9.4% from a year ago.

Commenting on the latest data, Andy Halstead, HomeLet & Let Alliance Chief Executive Officer, said, “Whilst there’s no doubt that it’s been a challenging year for many landlords, the increase in house prices has only increased the appeal of property investment. We expect to see more focus from the Government on the rental sector in 2022, through legislation like the Renters’ Reform Bill.”

1HomeLet Rental Index, 2022

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.