Figures released today by Rightmove show that rents outside of London have reached a new record average of £1,314 per month, a 7% increase from last year. Meanwhile, the average rental price in London now stands at £2,661 per month, 4% higher than this time last year.
This rise in rents is occurring at a faster rate outside of London, where the average price has increased by 7% compared to last year. In the first quarter, Rightmove data showed rental prices in the capital reaching a record £2,633 per month, with the average price outside of London hitting £1,291.
Richard Lane, chief client officer at StepChange, said: “These figures show that the private rented sector is not working as it should for millions of tenants. We need the new government to act quickly to bring in reforms that strengthen protections for those who are struggling. It was encouraging to see a new Renters’ Rights Bill introduced in last week’s King’s Speech, as the majority of people we see seeking help with problem debt live in the PRS, so it’s a sector that desperately needs reform.”
Lane highlighted the precarious financial situations faced by many tenants, noting, “Our research shows that many tenants’ financial situations are becoming increasingly precarious – one in three (31%) private renters has used credit to afford their rent in the past year, while one in two (50%) private renters is finding it difficult to keep up with bills and credit commitments.
“To protect renters from eviction when they fall on hard times, we need to ensure that financial difficulties don’t leave tenants at risk of losing their homes. That is why we welcome the new government’s commitment to ending Section 21 ‘no fault’ evictions, but reforms to grounds for possession need to have security of tenure at their heart, avoiding loopholes that could lead to backdoor evictions.”
He added: “For those facing rental arrears or financial difficulty, there is specialist support out there for you. A debt advice charity like StepChange can work through your budget and assess where you can make savings to pay towards your rent, which is considered a priority debt.”
