Bleak picture for North West rental market as tenants pay more
North West tenants are paying hundreds more pounds a month in rent, compared with a year ago.
The HomeLet Rental Index, which is released monthly and analyses archived rents to paint a picture of the UK market, said rental costs increased by 9.15% in the region over the past year.
The latest data also shows that, across the country, average monthly rent is up just under nine per cent (8.85%) compared with the end of 2022.
Average UK tenants can now expect to pay £1279 per calendar month (pcm) for their homes – £221 more every month than what the post-COVID rental market offered in December 2021.
As rising prices fail to match wage increases for many, North West tenants can now expect to cough up 31.3% of their wages for rent, which is a 2.3% increase compared with last year.
Despite the support announced for tenants by Prime Minister Rishi Sunak in the autumn budget, HomeLet’s figures give a stark view into the actual reality of the cost of living crisis in the UK.
On a more positive note, monthly rent in the North West has actually decreased by -0.2% and tenants are now paying, on average, £1,014pcm.
Andy Halstead, HomeLet & Let Alliance chief executive, said: “This month, our Rental Index has given a glimmer of hope for the North West as monthly rental prices drop by -0.2% to £1,014pcm. Previously, figures have been steadily rising every time we scrape our data, so it was a welcome surprise to see a negative variance this time around.
“Unfortunately, though, the general picture remains bleak.
“Rent prices across the UK have increased by nearly 10% across the country in a year, and are up more than 20% in two years. Though the autumn budget announced more support for tenants, especially those in low-income households, our maths suggests it will not be nearly enough to cover rising rental costs and the money being forked out for bills and food – which have also gone up.”
He added: “Rental prices have increased by 9.15% in the North West in a year alone, and by 23.7% since 2021. I hope that the monthly decrease in the region, though, is a sign of more positive movement in the market on the horizon. Spiralling costs are beneficial for neither landlord nor tenant, and we strive to support both at HomeLet.
“Especially for landlords with mortgages, the outlook is bleak for some time to come. The worst outcome possible for landlords is tenants failing to pay rent, everyone loses.”