Residential rents have risen at the fastest pace on record this year as high interest rates continue to squeeze Britain’s property sector.
Having climbed some 12% in the year to August, rents saw the largest jump since letting agent Hamptons began keeping records in 2014.
“Each passing month has ushered in a new rental market record," Hamptons' research head, Aneisha Beveridge, said.
"Rents have risen more in the last 12 months than they did between 2015 and 2019.”
According to the letting agent, average monthly rent for a new-let property now sits at £1,304, up by more than £100 in less than a year.
Last year’s jump to £1,200 had marked the first time averages sat above that mark, meanwhile.
"While the current pace of rental growth is unsustainable long term, many mortgaged landlords are being squeezed just as tightly as tenants," Beveridge continued.
High interest rates of 5.25% have hit homeowners, with Hamptons explaining many mortgaged landlords are now facing the squeeze of larger monthly payments themselves.
“Higher rents are only going some way towards helping mortgaged landlords balance their books, rather than boosting their profit,” Beveridge added.
Britain’s base interest looks set to rise further meanwhile, with the Bank of England tipped to lift rates to 5.50% later this week.