As renting becomes an increasingly popular choice for households across the UK, falling supply and rising demand have pushed rental costs to their highest ever.
- Uncertainty in the UK economy following the EU referendum has seen the popularity of renting soar
- Demand for quality rental properties has placed upward pressure on the average cost of renting
- Tenants are now paying record high rents, roughly more than £70 extra per month compared to October 2015
The popularity of the private rented sector in the UK has seen rental costs rise to record highs.
Private rents across England and Wales continued to increase in August, hitting a new high of £887 per month, research shows.
Tenants had to pay more than £70 extra per month to their private landlords compared to last year, a rise of 8.7%, according to the latest figures from letting agents Your Move.
The private rented market during August to October is typically busier than usual due to students looking for accommodation, but rents have nevertheless been growing steadily in recent months as many would-be property buyers put purchases on hold in wake of the vote for Brexit and choose to rent instead.
Adrian Gill, director of Your Move, said: “The rental market appears to have left any uncertainty about the market behind with prices across England and Wales again reaching record highs.”
“Yields have picked up following a gentle decline in recent months, something which landlords will no doubt watch with interest over the next couple of months.”
Despite London boasting the most expensive property prices across the UK, investors would be wise to look northward towards Manchester. The northern city, currently the strongest UK property market outside of London, boasts the highest rental yields in the UK at up to 6.02%.