Rents rise 9.2% in a year
The Home Let rental index found average rental values in the three months to February were 9.2% higher than the same period a year ago. During the month the average new rental contract was for £899 per calendar month.
The most expensive new tenancies were to be found in London where the average rent is £1,390 per calendar month. However this figure is down 2.5% month-on-month.
The cheapest area for rentals was North East England where new tenancies were taken out at an average of £550 per month.
If London is excluded from the Great Britain average, the typical rent was £724 per month. This figure is 7.7% higher than the same period a year ago.
“Last year saw the London rental market outstrip the rest of the UK in terms of rent price growth but what we are seeing so far in 2015 is the private rental market becoming much more broad based with the strongest rent price growth occurring outside of the capital,” said Martin Totty, chief executive officer of Barbon Insurance Group, parent company of HomeLet.
“ Other regions of the UK such as the South West of England and East Anglia are maintaining the rises achieved in 2014 and continuing to grow.
“The rent price growth seen in London during much of 2014 now appears to be slowing. However a recent survey we conducted with London letting agents has shown that demand for private rental property remains high and still outstrips supply, with 80% of agents saying there are more tenants than properties available.”