Rents in Britain surge 12% for the 1st time since 2014

Rents in Britain soar more than 12% in August as UK’s property market has shattered another record with rental costs growing at the fastest pace in at least a decade that the average monthly rent in the United Kingdom is now £1،304 (about EGP 50 thousand) a month، up £140 from the same month a year ago and the highest on record، while home sellers pushed up asking prices for the first time in four months.

Rents in Britain surge last month that the average monthly rent on a newly-let home in August tick higher to £1،304، less than a year after it hit £1،200 for the first time as sellers bumped up the prices they were asking for by % 0.4 in September، the first time asking prices have risen since May.

Rents in Britain are rising due to inflationary pressures

In the sales market، property portal Rightmove said that Rents in Britain are rising since the figures underscored inflationary pressures in the UK economy that are alarming the Bank of England and adding to pressure for another hike in interest rates later this week and an indication of turmoil in the property market facing a heavy impact on consumers.

Bloomberg News Agency mentioned that Rents in Britain soared as high interest rates shut out buyers and UK rents surged as high interest rates hit property market  and UK house sellers cutting asking price reaches highest in over a decade.

Rents in Britain soar because of high interest rates

New data from real estate and letting agent Hamptons show that the Rents in Britain soared and the average rent on a newly-let property has jumped by 12% in the year to August، the fastest since its index began in 2014، while residential rents across Britain are rising at their fastest pace on record as high interest rates shut buyers out of the property market، prompting sellers to slash their asking prices.

Rents in Britain have risen more in the last 12 months than they did between 2015 and 2019 that each passing month has ushered in a new rental market record، while the current pace of rental growth is unsustainable long term، many mortgaged landlords are being squeezed just as tightly as tenants.

Landlords increase the Rents in Britain to balance their books

Landlords increase the Rents in Britain because of the higher UK interest rate over the last 20 months، and have responded by pushing up rents paid by tenants، where they can، as higher rents are only going some way towards helping mortgaged landlords balance their books، rather than boosting their profit، so this is one of the reasons of not seeing large numbers of new landlords come into the market.

Rents in Britain are going up as the jump in borrowing costs with average fixed-rate mortgages over 6% has also made it harder for tenants to buy their own home instead of renting، the resulting slowdown is prompting many sellers to slash their asking prices. 

Proportion of homes reduced in price has hit the highest since January 2011

New data from Rightmove morning shows that the proportion of homes on the market reduced in price has hit the highest since January 2011 but overall، asking prices for new homes rose 0.4% in the last month، though were 0.4% lower than a year ago.

It is expected that Rents in Britain continue rising as on Thursday، the Bank of England is expected to raise UK interest rates for the 15th time in a row، from 5.25% to 5.5%، as it continues to battle inflation، but that could be the final hike in the current cycle، with the BoE’s Monetary Policy Committee hopeful that inflation will fall markedly by the end of this year.

Bank of England is hoping its longest string of rate hikes in 3 decades reins in inflation

The central bank is hoping that its longest string of rate hikes in three decades reins in inflation that makes the Rents in Britain especially residential rents surge at record pace across United Kingdom and are rising at their fastest on record، as high interest rates push up costs for landlords and shut would-be buyers out of the property market as BoE’s  measures have raised the cost of buying a home، leaving more people stuck in the rental market.

The UK is experiencing an unprecedented surge in residential rents، with recent data from the renowned estate and letting agent، Hamptons، revealing that the average rent for newly let properties has skyrocketed by an astonishing 12% over the past year، marking the fastest rate of increase since the index's inception about ten years ago.

Tenants paid، Rents in Britain، %12  more than a year ago

Tenants paid %12  more than a year ago Rents in Britain and for new rental agreements in August، the largest rise since property broker Hamptons began publishing its letting index، but  this was well below the increase usually seen at this time of the year، over the last decade، prices have risen by an average of 0.6 per cent in September.

A shortage of new instructions by owners to rent their properties out is compounded by anaemic construction levels، with the rate of new home building plunging as developers pull back on new projects and  also cut into the value of renting out property، prompting landlords to sell and exacerbating a shortage that has driven up rents. in Britain.