Rents rise and arrears fall in Q1
All parts of the UK except Scotland and the South East experienced year on year rent increases with the largest rises being reported in Wales (5.5%) and the East of England (5.5%).
Outer London’s average monthly rents rose by 5.4% year on year to £1,107 per month whilst the South East experienced a decline with average rents falling -1.1% to £1,054 per month.
In Scotland average rents fell 2.6% to £580 per month making it the cheapest rental accommodation in the UK.
All parts of the UK except for Scotland experienced a drop in rental arrears outstanding more than 30 days in Q1 2013 with the South West having the lowest arrears at only 4.5% of rent roll.
Nick Dunning, group commercial director at Countrywide, said: “The Countrywide Quarterly Lettings Index has once again given us the most comprehensive insight into the rental market across the UK and has highlighted some revealing facts.
“It shows that the rental market continues to develop strongly with some interesting movement in market dynamics from London to the regions.
“The growing average monthly rents across the UK shows the increasing attractiveness of regions outside London. London remains a good place to buy property, but investors are venturing further afield for investment opportunities.
“Scotland is an anomaly to this – with falling rents and increased arrears being compounded by recent legislative changes, investors might be deterred from buy-to-let investment.”