London’s rent price growth slowing in 2015 reveals homelet rental index

Landlord Expert
By Landlord Expert March 27, 2015 14:43
  • Rents rise in seven out of twelve regions across the UK in the three months to February 2015
  • London rent prices static in the three months to February 2015
  • The North East and South West of England lead rent price growth in 2015 to date
  • Average rent in the UK is now £899 (£724 excluding Greater London), an increase of 1.1% on January 2015

 About our data

HomeLet Rental Index provides the most comprehensive and up-to-date data on new tenancies in the UK. As part of the referencing process for around 350,000 prospective tenants each year, HomeLet processes information including the rental amounts agreed, the number of tenants moving into the property, together with the employment status, income and age of all tenants. The trends reported within the HomeLet Rental Index are brand new tenancies which were arranged in the most recent period, giving the most relevant insight into changes in the Private Rented Sector. This is in contrast to many other rental indices which are based on all properties which are being managed, which may have had rental amounts agreed as long as two years ago.

 New findings from the HomeLet Rental Index have revealed that after a period of rent price rises in London outstripping the rest of the UK, the disparity between the growth rate of the London and nationwide rental markets is beginning to narrow. Average rent prices in London have remained static in the three months to February 2015, versus the wider picture of predominantly rising prices. The average rent in the UK is now £899, compared to £889 at the end of January 2015, and £873 in December 2014.

The HomeLet Rental Index figures for February 2015 reveal that seven out of twelve regions in the UK have seen rent prices rise in the three months to February 2015, with the North East and South West of England leading the way at 3.1 per cent and 2.5 per cent price growth respectively.

Average rent prices over the three months to end-February 2015 also reveal growth in East Anglia, the North West of England, Northern Ireland, the South East of England and Yorkshire & Humber. Figures for the three months to February 2015 show that prices have not increased in Greater London and the West Midlands, and have fallen in Wales, the East Midlands and Scotland.

Looking solely at new tenancies commencing in the month of February 2015, prices have increased in the month since January 2015 in several regions, with Northern Ireland rising 7.2 per cent, the North East of England by 6.2 per cent, the South West of England by 4.5 per cent, and East Anglia by 3.7 per cent.

In contrast, rents agreed on new tenancies in London in February 2015 have fallen by 2.5 per cent compared to the previous month. Scotland, the East Midlands and Wales have also seen prices agreed on new tenancies fall in February 2015 compared to January 2015.

Commenting on the report, Martin Totty, Chief Executive Officer, Barbon Insurance Group, parent company of HomeLet, said: “2014 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. 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[i] we conducted with London letting agents has shown that demand for private rental property remains high and still outstrips supply, with 80 per cent of agents saying there are more tenants than properties available.” 

Rental figures from the February 2015 HomeLet Rental Index

Region

February 2015

January 2015

Monthly variation

Average 3 months to Feb 2015

Average 3 months to Jan 2015

Monthly variation

North East

£550

£518

6.2%

£533

£517

3.1%

South West

£867

£830

4.5%

£832

£811

2.5%

East Anglia

£790

£762

3.7%

£760

£746

1.9%

North West

£664

£650

2.2%

£657

£644

1.9%

Northern Ireland

£596

£556

7.2%

£571

£562

1.6%

South East

£897

£873

2.7%

£881

£870

1.3%

Yorkshire & Humber

£621

£613

1.3%

£613

£605

1.3%

West Midlands

£649

£635

2.2%

£642

£642

0.0%

Greater London

£1,390

£1,425

-2.5%

£1,412

£1,413

0.0%

Wales

£571

£586

-2.6%

£576

£581

-0.8%

East Midlands

£595

£617

-3.6%

£598

£606

-1.5%

Scotland

£596

£651

-8.4%

£625

£638

-2.1%

 

 

 

 

 

 

 

Overall UK average

 

£899

 

£889

 

1.1%

 

£889

 

£878

 

1.2%

UK excluding Greater London

£724

£707

2.5%

 

 

£710

£702

1.1%

Notes:

source HomeLet

 

Based on new tenancies in Feb 2015

 

Based on new tenancies in Jan 2015

 

Monthly growth Jan 2015-Feb 2015

 

 

Based on new tenancies in Dec 2014, Jan 2015 and Feb 2015

 

Based on new tenancies in Nov 2014, Dec 2014 and Jan 2015

 

Comparison of average rent prices in 3 months to end Feb 2015 3 months to end Jan 2015

HomeLet Rental Index Regional Variance Figures for the three months to end–February 2015

homelet feb 15

HomeLet Rental Index Figures for new tenancies agreed in February 2015

 homelet2 feb 15

Landlord Expert
By Landlord Expert March 27, 2015 14:43

Membership Login

Register| Forgot Password?

Recent Member Comments

  • Philip Haworth { Is there a letter to raise order for possession of the property. }
  • User AvatarLandlord Expert { We do not know of any issues. There have been 3 questions submitted today and have been published although I see none for you. Providing... } – Apr 20, 4:51 PM
  • User AvatarJazz Sounds { Is something wrong with your site? In your "ask a question" section I am unable to post my question. I am also unable to view... } – Apr 18, 10:37 AM
  • User AvatarDiane Lo { Tenant sublet his room to airnub guest without my knowledge. The airnub guest injured her foot and is now trying to claim compensation from us.... } – Apr 05, 10:55 AM
  • User Avatardenise minton { A boiler at my flat broke and it took 3 plumbers before one finally could have the time to repair it. My tenant was without... } – Feb 13, 9:04 PM
  • Older »

News Archive