London rents up 10.6pc
Rents in London for new tenancies stands at 1,265 per month, up from the UK average of £883 per month.
For the UK as a whole they increased by 2% yearly to January, however Wales and South Wales also saw rental increases of 6.1% and 4.1% to stand at £666 and £765 per month respectively.
Nick Dunning, group commercial director at Countrywide, said: “Renting is a flexible and relatively hassle-free way of living which suits many people’s lifestyles.
“It allows them to settle in a location where perhaps they couldn’t afford to buy but they enjoy living in.
“With a growing population of lifetime renters, increasing the amount of good quality, affordable rental accommodation is needed to meet this demand.
“With banks making it easier for landlords to offer longer tenancies and with more competitive buy-to-let mortgage products available, now is an ideal time for landlords to expand their portfolios and provide a more diverse range of affordable rental properties throughout the UK, not just in London and the South East as many would expect.”
Rental growth has been driven by one and two bedroom properties, which have seen rent rises of 3.3% and 1.9% respectively.
But rents have been steadier for renewed tenancies, as London rents increased by 4.7%, rents rose by 3% in the Midlands while they decreased by 1.2% in the North.