[UNITED KINGDOM, 27/9/2022] With the increase in private rental prices, tenants should look for a reputable estate and lettings agent to help them find a property to rent. Average rental prices in the UK have increased by three per cent in the past 12 months to June, according to the Office for National Statistics (ONS). If London is excluded, rental prices have increased by 3.6 per cent.

A one-bedroom property's average rent per calendar month is now equivalent to a two-bedroom property two years ago. The last 16 months also saw the cost of a two-bedroom property increase to the same level as a three-bedroom property in 2020.

The trend of higher rental prices suggests that current market conditions are ripe for real estate investors seeking to purchase and rent out properties.

Reason Behind High Rental Prices

Even though more properties have been available for rent since February, demand for these properties has also increased, based on the May 2022 report of the Association of Residential Letting Agents (ARLA). The average number of new applicants per member branch in May was 113, a slow and steady rise from the 78 registered in February. With more people looking for rental properties than there are properties available, rents are likely to continue rising as landlords can afford to be choosier about tenants.

Effects of High Rental Prices

For tenants, high rental prices mean limitations to their budgets. They may have to trade down and opt for a one-bedroom property instead of a two-bedroom to stay within their budget. The situation can have ripple effects on the tenant's lifestyle and overall well-being.

The situation also compelled the government to cap social housing rent increases. The cap options considered are three, five, and seven per cent. The cap will help ease tenants' burden and provide financial stability.

The high rental prices in the market also make it difficult for first-time buyers to get on the property ladder. This is because they would need to save for a longer period to have a larger deposit.

About Hop

HOP, or Home of Property, is an estate and lettings agent based in Leeds. The company offers a wide range of property services for tenants, landlords, and investors. The company's lettings team manages thousands of students and professionals in Leeds.

Visit hop-property.co.uk to learn more.