Rents rising across UK
Rents agreed on new tenancies across the UK in the three months to the end of May 2015 were 10.7% higher than the same time last year, with the average now standing at £935 per month and £738 excluding greater London.
The South West of England saw the largest increases, with average rent prices 13.6% higher than a year ago. Scotland (9.6%), the South East of England (9.4%) and Greater London (9.2%) 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.
Martin Totty, chief executive of Barbon Insurance Group, the 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.”
He added: “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.”