South West property rent prices at record highs
Prices have jumped 40% between June and July
Rent prices in the South West have leapt up an astonishing 40% between June and July this year, according to the Goodlord Rental Index.
It's brought the region's average rent cost up to 10% higher than this time in 2023, with a property costing an average of ÂŁ1,950 per month, as rental market records were smashed in July.
It's almost ÂŁ500 higher than the England average of ÂŁ1,470.
The Goodlord Rental Index analyses thousands of tenancy contracts each month, meaning the data is based on confirmed prices of new tenancies, as opposed to advertised figures.
Oli Sherlock from the Goodlord Group said prices do tend to jump up around this time of year, thanks to students across the country moving into accommodation for studying.
Students generally share the costs, but Oli said those are usually higher than market value.
"But in reality there is a supply and demand issue property across the entirety of the UK," he said.
The Government has announced it's intention to build around 300,000 new homes a year, but Oli fears that still might not be enough.
He said: "In reality to really change this space for people within the space in the sector right now building has to start very, very soon.
"So whilst there is some level antidote there to this problem, unfortunately I think it's an issue that we're going to face for some years to come until those homes come through the funnel and back into the market."
Landlords not to blame
Oli told us it would be 'unfair' to say it's simply landlords trying to make more money.
"It's worth pointing out that landlords are under exactly the same pressures as everybody else, so the interest rate rises, which were clearly off the back of that mini budget (under Liz Truss' Government) that really sent shock waves through the market really are compounding this problem.
"So landlords have to ensure that ultimately they can cover their costs at least."
He added that it's vital landlords stay in the market at a reduction in the number of available homes would further exacerbate the problem.
"We really are caught in this this ecosystem bubble that looks a bit like a death spiral at the moment really because landlords are trying to keep their heads above water, tenants need somewhere to live.
"They're also trying to keep a head of water and at the same time, we're not seeing the same wage inflation that we would see around other inflationary areas and that adds further pressure on everybody," Oli said.
He advises landlords and tenants to communicate to reach suitable agreements for both parties or to use letting agents, if you have one.
Letting agents can help both sides and may be able to find a more affordable property coming onto the market.
Oli added that landlords should consider the benefit of having a good tenant in their property, saying someone who pays their rent each month is 'worth something'.