London rents flatten out
In the three months to February rents in the capital averaged £1,412, around the same figure recorded in the three months to January.
For the UK as a whole three months’ rents have risen by 1.1% from January to February stand at £710.
Rents rose in seven out of 12 regions; led by the North East (3.1%) and the South West (2.5%), while at the other end of the spectrum they declined in Scotland (2.1%), the East Midlands (1.5%) and Wales (0.8%).
Martin Totty, chief executive of Barbon Insurance Group, 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 we conducted with London letting agents has shown that demand for private rental property remains high and still outstrips supply, with 80% of agents saying there are more tenants than properties available.”
On new tenancies commencing in February 2015 prices have risen in Northern Ireland (7.1%), the North East (6.2%), the South West 4.5%) and East Anglia (3.7%).
But rents on new London tenancies have fallen by 2.5% in February compared to the month before, while they also fell in Scotland, the East Midlands and Wales.