Average monthly UK rents in the UK rose 0.2% to £1,262 in February from the previous month, following a quarter of falls, HomeLet data shows.
The rise in rents comes as the lettings services firm calls on Chancellor Jeremy Hunt to help tenants ahead of the Spring Budget on Wednesday. Lets are 7.4% higher than a year ago.
The business says: “Income tax cuts and assistance to help people get on the property ladder are rumoured amongst other changes within the property industry. But so far, nothing has been hinted at for the rental market.”
London’s average monthly rent fell by 0.5% to £2,070 in February from the previous month, but is 4.8% higher than a year ago, according to the HomeLet Rental Index.
The cheapest region in England, the North East, saw a price increase since January of 1.5% to £655, which is 5.7% higher than the previous 12 months.
The study points out that the rent-to-income ratio for tenants continues to rise, with renters spending 33.3% of their wages on rent, before utilities and other living costs. This figure is 2.3% higher than in 2023.
HomeLet and Let Alliance chief executive Andy Halstead says: “Mounting costs in property management and maintenance have sent rental prices through the roof, which is a lose-lose situation.
“Tenants are struggling to sensibly match their wages to monthly rent, and landlords are faced with defaults and vacancies as a result.
“We’d like to not only see the rental market considered in the Spring Budget, but action brought about.
“More support for landlords dealing with the soaring cost of living, which can then be passed on to tenants and go somewhat into mitigating the soaring overheads we are sadly reporting on most months in our rental index.”
The government’s Renter’s Reform Bill, which promises to boost tenant rights, is currently making its way through Parliament, although it is bogged down by a series of proposed amendments to alter and water down the legislation.
