UK rents on the rise and London rents top £1500 pcm for the first time.

Landlord Expert
By Landlord Expert June 9, 2015 12:48
  • Rents have risen in all 12 UK regions in the three months to May 2015 compared to last year
  • The average rent in the UK for new tenancies in three months to May 2015 was £935 per month (£738 excluding Greater London)
  • The average rent for new tenancies in the month of May 2015 in Greater London was £1,506

New findings from the HomeLet Rental Index show that rent prices in every region of the UK are now rising, an occurrence only seen twice previously in the history of the Index; once in October 2014 and once in December 2010. The Index also reveals that the pace of growth in London has picked up again, after a period of slower growth, with average rents agreed on new tenancies in May 2015 exceeding £1,500 per month for the first time. 

The latest HomeLet Rental Index figures show strong growth in rent prices across the UK since this time last year, with all 12 regions recording price rises compared to the same period a year ago. Rents agreed on new tenancies across the UK in the three months to the end of May 2015 were 10.7 per cent higher than the same time last year, with the average now standing at £935 per month (£738 excluding Greater London). 

The South West of England saw the largest increases, with average rent prices 13.6 per cent higher than a year ago. Scotland (9.6 per cent), the South East of England (9.4 per cent) and Greater London (9.2 per cent) also advanced strongly.

In Greater London, the average rent now stands at £1,472 for the three months to May 2015, however, when looking solely at new tenancies agreed in the month of May, the average rent has exceeded £1,500 for the first time in the history of the Index. The average rent on new tenancies signed during May 2015 was £1,506 per month.

Annual variance comparison figures: Greater London vs rest of the UK

Year on Year Variance (3 month average rent

May 2014

June 2014

July 2014

Aug 2014

Sept 2014

Oct 2014

Nov 2014

Dec 2014

Jan 2015

Feb 2015

March 2015

April 2015

May 2015

 

Greater London

 

 

9.5%

 

10.3%

 

10.7%

 

11.0%

 

10.5%

 

10.0%

 

10.0%

 

10.6%

 

12.5%

 

10.3%

 

8.9%

 

7.5%

 

9.2%

Rest of the UK (exc. London)

 

2.8%

 

2.6%

 

3.1%

 

2.9%

 

3.7%

 

3.9%

 

4.7%

 

3.7%

 

3.3%

 

4.7%

 

6.7%

 

7.4%

 

7.6%

Source: HomeLet Rental Index May 2015 

Annual variance comparison figures: Greater London vs rest of the UK

image004

Source: HomeLet Rental Index May 2015

Commenting on the report, Martin Totty, Chief Executive Officer, Barbon Insurance Group, parent company of HomeLet, said: “Rental values are now increasing year on year across the country, with no exception. After a short period of London rents rising more slowly, when it seemed the rest of the UK may catch up or even exceed the capital in the speed at which rent prices were increasing, we now see the rate of price rises in London returning towards double digit growth, while the rest of the UK continues to rise steadily.”

 

HomeLet Rental Index regional rent price figures for the three months to May 2015

 

Region

Average rent 3 months to May 2015

Average rent 3 months to April 2015

Monthly

Variation

Average rent 3 months to May 2014

Annual variation

South West

£878

£877

0.1%

£772

13.6%

Scotland

£652

£635

2.7%

£595

9.6%

South East

£940

£916

2.6%

£859

9.4%

Greater London

£1,472

£1,436

2.5%

£1,348

9.2%

West Midlands

£648

£645

0.5%

£607

6.9%

East Anglia

£776

£778

-0.2%

£730

6.4%

Northern Ireland

£598

£594

0.7%

£564

6.1%

North East

£537

£526

2.2%

£512

4.9%

East Midlands

£599

£598

0.1%

£581

3.0%

Yorks & Humbs

£591

£598

-1.2%

£575

2.8%

North West

£666

£668

-0.2%

£653

2.1%

Wales

£582

£573

-1.5%

£579

0.4%

 

 

 

 

 

 

Overall

UK average

 

£935

 

£916

 

2.0%

 

£845

 

10.7%

UK ex Greater London

 

£738

£730

1.1%

 

£686

7.6%

Notes:

source HomeLet

Based on new tenancies in March, April & May 2015

Based on new tenancies in Feb, March and April 2015

Comparison of average rent in 3 months to end May 2015 and 3 months to end April 2015

Based on new tenancies in March, April and May 2014

Comparison of average rent in 3 months to end May 2015 & 3 months to end May 2014

Martin Totty continued, “With the whole of the UK experiencing increases in rent prices agreed on new tenancies, it is possible this is an early indicator of a post-election private rental market where both landlords and tenants might expect rent prices to keep rising as demand continues to grow.”

Landlord Expert
By Landlord Expert June 9, 2015 12:48

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