Rents in the UK’s private rented sector continued to increase in September, the latest figures show. The data from HomeLet reveals that the average rent in the UK hit £697 per calendar month (pcm), up 2.2% on the same period last year.
When London is excluded, the average rent in the UK is now £797pcm, up 2.2% on last year. Average rents in London are now £1,694pcm, up by 3.3% on last year
All 12 of the regions monitored by HomeLet showed an increase in rental values between September 2018 and August 2019. Five of the regions monitored by HomeLet showed an annual increase of over 3%, the North West, the East Midlands, the South West, Greater London and the North East
The region with the largest year-on-year increase was the North West, showing a 4.4% increase year-on-year.
Labour’s plan to introduce a rent cap has been slammed by ARLA Propertymark. Labour has proposed capping rents and with Labour’s conference well under way, shadow chancellor John McDonnell has vowed that is what the opposition party will do if it wins a majority at the next general election.
The party is developing rent control proposals as part of its election bid in the hope that it will gain public support to give Jeremy Corbyn and McDonnell the power to combat increasing rents across the UK. McDonnell said: “We’ll cap rents and build a million new genuinely affordable homes, so young people in particular, aren’t pouring away thousands of pounds from their wages to rip-off landlords.”
But in response to McDonnell’s speech on his intention to introduce rent caps at the Labour Party Conference 2019, David Cox, chief executive, ARLA Propertymark, was not impressed. Cox said: “Rent controls do not work; it hits hardest those it’s designed to help the most. The last time rent controls existed in this country, the private rented sector [PRS] shrunk to the lowest levels ever recorded.
“At a time of demand for PRS homes massively outstripping supply, rent controls will cause the sector to shrink. In turn, this means professional landlords will only take the very best tenants, and the vulnerable and low-income people that rent controls are designed to help, will be forced into the hands of rogue and criminal operators, who may exploit them.”