The average rental cost across the UK has skyrocketed, reaching an all-time high according to a published report. An observed surge in rental prices is due to a dramatic rise in demand and a simultaneous decrease in the supply of available rental properties.
The average cost of renting a property in the UK has been pegged at £887 per month, an increase of more than 2.6% when compared to the corresponding period last year. This figure varies across different regions. In Scotland, the monthly rental cost has risen by 5.6% to £716, whereas in the South West, there has been an increase of 4.4% to reach £963. Moreover, London still retains the title for the highest rents with an average monthly charge of £1,665, a 8.3% hike year-on-year.
The studied data also reveals that prospective tenants are facing fierce competition for rental properties. This can be ascribed to more parents seeking rental properties as a result of their children entering universities, first-time renters entering the market, and overseas students returning to the UK.
The shrinking availability of rental properties has added fuel to this issue. The number of rental properties in the country has declined by 13.3% in comparison to last year. Among the causes attributable to this crunch in supply, one includes the absence of overseas landlords due to travel restrictions, which has led to a diminished number of available properties to rent.
In conclusion, the combination of soaring demand and shrinking supply has propelled UK rental costs to an unprecedented high. If the shortage of rental properties persists, the continual growth of rental prices remains a realistic expectation for the future.