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Buy to Let

UK rents continue to skyrocket

Adam Williams
Written By:
Adam Williams
Posted:
Updated:
15/04/2015

Tenants in the UK are paying 10% more each month for their properties than a year ago, a study into the market has shown.

Property firm HomeLet found that rents had rose 10.2% in the last year to reach an average of £902 per month.

Rents in every area of the UK barring Wales are higher than last year. Across Wales the typical new rent was 0.9% lower than the first quarter of 2014.

If London is excluded from the figures, average rents across the rest of the UK grew 6.7%, the highest annual growth since the survey began.

The South West of England witnessed growth of 13.7% in the past 12 months and is now home to the highest rents outside London and the South East. A typical property costs £851 each month.

Martin Totty, chief executive officer of Barbon Insurance Group, said lack of demand in the sector was increasing rents significantly.

“With average rents for new tenancies across the UK now more than 10% higher than a year ago, what we are seeing is a market that is experiencing sustained demand from increasing numbers of people requiring privately rented property,” he said.

“However, rent price growth in London is no longer outpacing that of the rest of the UK. The HomeLet Rental Index shows that during the first three months of 2015, rents on new tenancies in six regions of the UK rose more quickly than Greater London.

“Demand for rental property in London remains high, but rent price growth in many regions outside of the capital has matched or exceeded London over the past three months.”


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