Rent has increased by 30% on average since start of pandemic

The average price of rent has risen by 30% since the start of the pandemic, according to market analysis by rental platform Rentd.

The rental sector faced eviction bans, social distancing and a decrease in demand amid a rejection of city living and reduction in tenant income during the worst of Covid-19.

While the value of rent declined in 2020, with the average monthly rent in March being £843, rent prices have now risen by 9.8% higher now sitting at £926 per month.

Founder and CEO of Rentd, Ahmed Gamal, commented: ‘Things looked bleak for the rental market during the pandemic and a drop in demand caused rental values to plummet, particularly across our major cities.

‘But with so many reliant on the rental sector a return to normality was always going to rejuvenate the market and that’s exactly what we’ve seen in recent months.

‘Even in London where the media was giddily reporting a mass exodus and subsequent collapse in rent value, the market has bounced back with remarkable fortitude and while some central boroughs are yet to recover fully, the rental market as a whole is starting to look very much like its old self again.’

The East of England was found to have experienced the biggest increase in rent, with monthly prices going up by £88 or 10.2%.

Places experiencing the biggest declines of monthly rents include the City of Westminster with decreases of 22.6%, Exeter at 20.4%, the City of London at 18%, Camden at 13.1% and Brighton & Hove at 11%.

But despite areas of London seeing decreases in rent, 58% of the city’s rental market has seen value increases, such as Kingston-upon-Thames where monthly rent has increased by 16.3%, from £1,306 to £1,519.

However, not everyone will be pleased by the rise in rent prices, since new research by Ipsos found 72% of the British public would support the introduction of rent controls.

The majority of Brits surveyed were concerned, with most believing the situation wouldn’t improve and 67% feeling there wouldn’t be enough affordable new homes built in coming years.

Some reforms to the rental sector were proposed last month, with no-fault evictions and bans on families with children or on benefits to be outlawed, to ensure tenants rights were being upheld.

But with Prime Minister Boris Johnson set to resign after being handed a record 57 resignations, it’s unclear whether these reforms will still go ahead, as Michael Gove, who made the proposals, was sacked as Housing Minister yesterday. 

Photo by Egor Myznik