Our latest Rental Index has shown that the majority of the UK’s regions outside Greater London have seen a growth in their rental rates, with only Wales seeing a decrease in its year on year variance. Here, we take a look at the data.
Rents have risen in 11 out of 12 regions across the UK comparing Q1 2015 to Q1 2014
The average rent in the UK is now £720 excluding Greater London
Rental growth highest in the South West of England, with prices 13.7% higher than a year ago
Greater London Vs. the rest of the UK
Our Rental Index shows that average rental rates outside Greater London are 6.7% higher than they were at this point last year, which is the largest level of annual variance we have seen since the Rental Index was established in 2008.
Our data also shows a convergence between rental rates in Greater London and other areas of the UK, with the data showing that the rental rate rise is not solely attributed with ‘the London bubble’. In fact, rises are actually led by the South West, which has witnessed a 13.7% rise in the year on year variance.
As a comparison with previous years, we can see that:
- Greater London’s annual variance has decreased slightly since witnessing such a large increase throughout 2014.
- Greater London’s rates reached a peak in January 2015, where they were at their highest level since 2011. While the variance fell for other regions at this point, it has risen sharply since.
- 2010 was the last time that we saw a negative variance in both Greater London and other regions.
Average rent by region
The top three regions with the largest annual variance were:
- South West – 13.7%
- Greater London – 8.9%
- Scotland – 7.5%
The three regions with the lowest variance were:
- Wales: -0.9%
- Northern Ireland: 3.7%
- The North East - 3.8%
Rental variance by percentage change
Overall, our data shows that rents across the UK are 10.2% higher than they were last year, with Wales being the only region to see a fall, at -0.9%.
This means that the average rent for the UK, excluding Greater London, stands at £720 in the three months to February, a £10 increase from the three months to January average.
For a full regional breakdown you can see the Rental Index here.