England rental prices spike to ‘highest ever recorded’ with tenants desperate to buy homes

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House prices in the UK have boomed during the tail end of this year. The surge in house prices has largely been influenced by the government’s decision to implement a stamp duty holiday until March 31 2021. The latest private rental market summary statistics for England from the ONS have revealed a similar surge in rental prices.

The median monthly rental prices for the private rental market in England were calculated using date from the Valuation Office Agency.

The latest figures suggest the average rent was £725 in England between October 2019 and September 2020, which is the highest ever recorded.

Unsurprisingly, rental prices varied greatly depending on the region, with London being the most expensive.

London’s average monthly rent came out at £1,435, which is nearly double that of England’s average.

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Meanwhile, the North East came out with the lowest average at just £495.

The capital’s average rent price was £540 higher than the next largest median rent which was £895 in the South East.

However, London rents also had the greatest range in prices.

Inner London prices soared on average to £1,690 while outer London prices came in at £1,300 on average.

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The most expensive local authority in England was Westminster, where the average monthly rate came in at £2,395, while the lowest monthly median rent in inner London was Lewisham at £1,300.

The least expensive average monthly rent in England was in Kingston upon Hull which came in at just £412, while the highest median monthly rent in Yorkshire and The Humber was in York at £750.

The median monthly private rental price increased depending on the number of rooms in the property.

Single rooms had the lowest monthly rent while properties with four or more bedrooms cost more.

A property with four or more bedrooms in Westminster could cost you on average £7,323 a month.

While in County Durham this drops to £700 on average each month.

Olu Olufote, founder of the homeownership platform, RenterBuyer explained that the high rental prices mean it’s “no surprise” tenants are “desperate” to buy a property and get onto the ladder.

He added: “Psychologically, it can be deflating knowing that you’re paying so much for so little, especially in the capital where rents are borderline obscene.

“With interest rates so low, getting a mortgage can be considerably cheaper than paying rent but finding a deposit remains a key obstacle to homeownership.”

Mr Olufote said many tenants would “not be upset” to see property prices potentially drop next year so they can get onto the property ladder.

He continued: “Affordability is the other issue preventing tenants from turning into homeowners and many will not be overly upset to see property prices come under pressure next year due to potential Brexit disruption and economic fallout from the pandemic.

“Anyone seeking to buy their first home in today’s market needs to show estate agents and mortgage brokers that they are genuinely purchase-ready rather than simply chancing their arm.”

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