London rent growth meets rest of UK
In the three months to April 2015 London’s rental growth dropped to 7.5% from the same period last year after increasing by just 0.6% in the last month.
For the rest of the UK the equivalent figure was 7.4%, although the average rent for the rest of the UK was still far cheaper at £730 per month compared to £1,436 in the capital.
Martin Totty, chief executive at 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 it is not simply a London phenomenon that increasing numbers of people are requiring privately rented property.”
The average rent on a tenancy signed in the UK during the three months to April 2015 was £916, up from to £902 last month and £833 for the same period a year ago.