15th May 2015
Rents are rising in 11 out of 12 regions in the UK as regional prices catch up to London.
According to figures from tenant reference service HomelLet, the average rent across the UK rose in line with Greater London tenancies in the three month to April – the first time this has happened since HomeLet’s Rental Index was started in 2008.
It shows the average rent in the UK is now £916 per month, and £730 excluding Greater London.
The rents agreed on new tenancies in London in the three months to April were 7.5% higher than in the same period last year compared to a 7.4% rise in the rest of the UK. The change comes after London witnessed a year when rents rose at over twice the rate of the UK average
However, a slowdown in London and a pick up in the rest of the country means growth has now converged.
Almost all, 11 out of 12, regions in the country have witnessed price rises and the £916 per month rent is up on the £902 average last month and £833 per month a year ago.
In Greater London the average rent is now £1,436, up from £1,427 last month and £1,336 a year ago.
Martin Totty, chief executive of HomeLet’s parent company Barbon Insurance Group, said:
‘For the first time we are seeing rent price growth rates in Greater London converge with those across the rest of the UK. 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 is not simply a London phenomenon that increasing numbers of people are requiring privately rented property.’