Rents are on the rise in Great Britain!
For the first time since the coronavirus pandemic began, rents have increased across Great Britain, with the hikes mainly coming from country and rural locations. This data shows a shift many of us have been expecting with people spending more time at home, with demand soaring for gardens, greenery and more indoor space.
This data comes from Hamptons International and shows that the average cost of a newly let property in the countryside rose to £919 per month in October, up 5.5% compared with the same period last year and more than triple the average rate of growth across Great Britain. Demands for homes in the countryside also rose by 4% in the same period.
Rents in London have fallen for the 8th consecutive month but the market does appear to be recovering there. Average rents in the capital fell by 0.6% in October, a smaller drop than the 2.9% recorded in September.
The gap between rental growth in inner and outer London continues to widen, with outer London rates rising by 3.3% in October (nearing pre-pandemic levels), rents in inner London fell by 14.9%. This makes the gap between average rental prices in inner and outer London only 18%, compared to the 32% that was recorded last year.
This shift in demand has seen landlords able to increase their rent, with 48% of landlords who let properties in the countryside upping their monthly fee, while 35% of landlords who let properties in cities have done the same.
Aneisha Beveridge, head of research at Hamptons International, said: “Rents started to pick up steam in October. Following six months of stagnation, rental growth accelerated to 1.4% across Great Britain, marking the first annual increase since March. But the shift in tenant preferences since the spread of Covid-19 has meant that rents are now rising faster in country rather than in city locations.
“The flexibility of the rental market has meant that while some renters have decided to make a permanent move out of cities in search of more space, others have moved out temporarily. The opportunity to work from home means tenants can save while paying less rent in more rural areas. As a result, the gap between rents in cities and the countryside is closing. Tenants making the move from city to country last month spent 31% less on rent, down from a 38% saving in October 2019. But it seems as though these changes have been firmly priced in and we expect the gap to widen again next year.