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Regional rents rise as fast as London

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
15/05/2015

Rent rises in London are now being matched by those elsewhere, figures from the Home Let rental index have shown.

Data showed rents had increased in 11 out of the 12 UK regions surveyed during the three months to April. The average rent outside of London is now moving as fast as those in the capital.

It said this was the first time rents across the UK had matched London since at least 2008.

The average new tenancy in London saw rents 7.5% higher than a year ago. During the same period rents outside the capital grew 7.4%.

This follows a year where London rents grew at twice the UK average rate, the firm said.

The average UK tenancy has rent of £916, in London that figure stands at £1,436.

Martin Totty, chief executive officer of Barbon Insurance Group, parent company of HomeLet, said the rental boom was now moving outside of the capital.

“For the first time we are seeing rent price growth rates in Greater London converge with those across the rest of the UK,” he said.

“During 2014, London rent price growth far outpaced other regions but in 2015 we are seeing the emergence of a different pattern. What this tells us is that the private rental market is experiencing demand nationwide and that it is not simply a London phenomenon that increasing numbers of people are requiring privately rented property.”

“While there have been periods in recent years where London’s rent price growth has moved more in line with other parts of the UK, most notably during the period following the financial crisis, the capital has always remained significantly ahead. The convergence suggests that after a lengthy period of substantial outperformance in terms of rental increases, the pace of growth in London has slowed – while the rest of the UK is catching up.”


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