Average advertised rents increased by 1.54% (£15) across Britain in Q1 2014. This is a 2.66% (£25) increase when compared to the same period last year.
Rents have continued to grow steadily over the last three months to reach their peak at £995. They are also moving closer to the £1,000 per month milestone which we expect in 2014.
On a regional level, growth in Greater London (£55), Scotland (£40) and the South East (£49) brings good news for landlords. However, average asking rents have seen significant discounts in the North East (£54) and Wales (£27) following the spike at the end of 2013. This will no doubt be welcome news for prospective tenants in these regions.
National rents are stronger than those of 12 months ago which suggests that the peak witnessed in Q4 2013 has been surpassed.
Robin King, director of Move with Us, said: “The overall growth of the UK rental market is a sign that Help to Buy hasn’t affected the rental market as some first feared. While the five per cent deposit that the government scheme brought about has enabled people to purchase property in previously unaffordable areas such as Greater London, it certainly hasn’t hindered rental prices for landlords and investors.
“Rents have dropped in places such as Wales and the North East but this was expected on the back of significant rises seen in the last quarter. On the whole, the UK rental market has had a good start to the year.”
