HomeLet Rental Index shows surge in rents

News Release from HomeLet Insurance just in - 12th October 2010

HomeLet Rental Index shows surge in rents for the South West

The latest HomeLet Rental Index shows that the cost of the average rent in the South West of the UK increased by 6.78% in September when compared to August. This is the largest month on month increase for any region in the UK during 2010.

Commenting on the latest Rental Index HomeLet Sales, Marketing and Operations Director, Heidi Abbott explained; “The latest HomeLet Rental Index reiterates the fact that the sustained demand for rented property over the summer has continued to out pace the supply of available properties in the UK. This demand has pushed up rental values, particularity in the South.

“Recent figures show that constraints in the UK sales market have pushed the average age of first time buyers to 43. An increasing number of people are now looking at renting as a longer term option, either through choice or because of a lack of available funds for a deposit.

“There’s no doubt that the importance of the private rented sector has increased significantly over the last decade, it’s now a key element of the UK’s fragile housing supply chain, but the lack of available properties to rent is a real concern. The market has recently seen an increase in the availability of buy-to-let mortgages, but these remain expensive for investors with less than 20% equity. The increase in Capital Gains Tax has also proved to be a barrier for potential investors and the ongoing supply constraints will continue to support increasing rents in the near future.”

When comparing September 2009 against September 2010, the HomeLet Rental Index showed that rents have risen in all regions of the UK except for the North East, which has seen a small decrease in rents of just 0.94%.

Heidi continued: “We’ve found that many letting agents across the UK are struggling to find enough landlords to meet the demand from their potential tenants, but those who have diversified their business models to include our range of specialist insurance products are continuing to thrive even in these difficult conditions.”

More information about HomeLet Insurance

As the UK’s largest tenant referencing firm HomeLet referenced over 37,000 individuals in September alone. The HomeLet Rental Index shows the actual rental amount that tenants are referenced for by letting agents across the UK. In some cases advertised prices can vary from the final rental value, so HomeLet’s report gives an alternate view on rental prices in the UK.

 HomeLet is the UK’s largest tenant referencing, Rent Guarantee and specialist insurance provider for the lettings industry and has around 3,000 approved letting agents nationwide.
 HomeLet pays out an average £3m in Rent Guarantee claims every year.
 The National Housing Federation recently announced that the average age of a first time buyer has risen to 43.
 HomeLet have been shortlisted for the 2010 Landlord & Letting Awards.

HomeLet is a trading name of Barbon Insurance Group Limited which is authorised and regulated by the Financial Services Authority. Registered in England number 3135797. Registered office address: 4-9 Highview, High Street, Bordon, Hampshire GU35 0AX.

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