Rents soar by 19% in England, students seeking accommodation concerned

In recent UK rent news, independent research discovered that rents in England had reached record monthly increases in the month of July, an increase of 19%. This number overtakes the numbers that were seen in September last year. The numbers are believed to be inflated because of the soaring number of students seeking accommodation for the new academic year.

The report published by Goodlord Rental Index saw a rent increase in England as the average rental amount passed £1,300 in July, breaking the hearts of many students and rental property seekers alike. The report found that the cutthroat UK housing market had led to an increase in rent. The average rent cost went up to £1,367, a 9% increase from last September’s £1,249. If the numbers weren’t bleak enough, then the average cost in July was 19% higher than in June. Insofar the month-on-month rent increase England was 1.3% the whole year. This number jumped by 10% in July, however. 

The research organisation hypothesise that the increase in rents can be attributed to, in part, more expensive properties being let to university students seeking accommodation. “This month's numbers are quite staggering. In July, we do usually expect to see an increase in rents and a reduction in voids - and all indicators pointed to a particularly red hot summer for the rental market, if not the weather…” says Goodlord’s CEO William Reeve. 

The numbers are expected to have risen, according to many experts, because of the increase in international students. This comes at the backend of the UK allowing universities to charge more from international students, hence incentivising universities to admit more of their international populace.

“Digging into the data, we can see a large number of multiple occupancy student lets being confirmed during July, which has pushed up average prices in key regions such as the North East and South West,.” affirms Reeves. “Traditionally, rental costs continue to increase until September before cooling off in the autumn, which could mean these aren't the last records we'll see broken before the year is out.”

In London rent news, there has been a minor increase of 1.06% in rent on average, while areas such as the North West and South West have witnessed over 40% increase. With a spike in rent, there also comes a shortening of “void periods” in this UK rent news. Void periods refer to the span of time between tenants leaving the property and the arrival of new tenants, “So while the 10 % year-on-year increase is a big shift, the sharp drop in void periods is also particularly surprising.”

Some areas, such as the North East and South West, saw void periods shrink to mere 6 days - a challenge to both landlord and tenant in the massive rent increase England. 

The rent increase can influence the student experience

According to separate research conducted by PwC, the London rent news and overall rent increase in England coupled with a student accommodation crunch in the UK may impact the overall student experience. Universities in Glasgow have seen an increase of 18,500 students since 2019/20, and so have cities like Bristol and Manchester, which have seen an increase of 10,500 and 10,000, respectively. “Many students may face limited choice in relation to the mode and location of their studies, coupled with reduced access, choice of location and quality of accommodation they can afford,” says Damien Ashford, Education Leader of PwC. This may overburden students who may already be dealing with the mental and physical demands of moving to a new place. Such burdens placed on students, such as the rent increase London may determine the ability of a student to thrive and do well at their universities, which look bleak at the moment. “In most cases, students enjoy an excellent experience in Purpose Built Student Accommodation - covering both university-owned and private.”, this reinforces the need for more PBSAs to be constructed. 

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