Tenants face double digit rent rise
Market research conducted by HomeLet found that the average monthly rent charged by landlords has increased 10.5% in the last 12 months.
Tenants in every region of the UK face higher rents than they did a year ago, with the average new tenancy costing £992 per month. This figure was 1.6% higher than three months ago.
However, three regions – the South East, North West and North East of England – saw rents fall during the last quarter. The biggest came in the North East, where the typical new tenancy was 2.1% cheaper than three months ago.
The North West was the only region to see rents fall compared to a year ago.
London was home to the highest average new rent, in the capital the average was £1,558 per month during the three months to August 2015. The North East had the lowest prices in the UK, with an average of £554 per month.
Martin Totty, chief executive officer at Barbon Insurance Group, said rent rises were slowing down.
“Rents continue to run slightly ahead of house prices, with the majority of the UK still experiencing rising rents, albeit at a much slower pace than we saw in the early part of 2015,” he said.
“On an annualised basis, however, rents in most regions are still significantly higher than the same period a year ago, with only the North West reporting lower rents for new tenancies in the three months to August 2015 than for the same period last year.”
He added: “We now ask ourselves: will the next few months see the pace of rent price growth resume, or has this slowing set the tone for the rest of 2015?”