New data from HomeLet has revealed that average UK rental prices have continued to rise across all regions, with the average rent, excluding London, now £1,051 per month (PCM), up 1.4%, while prices in the capital have continued to soar to a new high of £2,145 PCM, up 1.7%.

The continued rise in rental prices comes at a time when there has been a record increase in mortgage interest rates.

The current average five-year rate is now 6.19%, compared to 2.64% in December 2021, and as a result, many first-time buyers are unable to buy a home.

This also comes at a time when 1.6 million Brits will be coming to an end of their fixed-rate mortgages at the end of the year, with many unable to afford to remortgage – piling pressure on a dwindling rental market and pushing up rental prices, as demand outstrips supply.

The rental market has seen an exodus of landlords at a time when properties are in huge demand.

However, despite the demand, it has become less profitable for buy-to-let landlords to rent out a property.

This comes as soaring mortgage prices are now forcing landlords to push up rental costs to cover their mortgage repayments, alongside the planned introduction of the government’s costly new EPC targets, which will force landlords to upgrade the energy efficiency of their buy-to-let properties to a rating of ‘C’ within 5 years.

This is set to come at a considerable cost or Landlords willface fines of up to £30,000.

Data from Cornerstone Tax 2020 found that only 20% of landlords in the UK now say their investment has been a successful one.

Source: Property Notify