- Average monthly variation in rent across the UK 2.3% during August 2014
- Average monthly private rents in the UK (excluding London) now £729
- Average monthly private rent in London now £1,464
Rental price growth across the UK eased in August, with every region of the UK seeing smaller rent increases than in previous months, according to new findings released today from the August 2014 HomeLet Rental Index. The data has also shown some regions that were previously showing high growth month-on-month, have fallen in August.
This month’s data from the HomeLet Rental Index, the largest monthly survey of private tenants in the UK, has shown that rental increases were significantly lower than in previous months – with only London (2.4%) and the South East (3%) registering increases of more than 2%. East Anglia and the South West, both of which have been recording strong growth in recent months, have seen a slow down in August with rents in East Anglia increasing by just 1% and the South West recording a drop in rental prices by 0.9%.
Rents were also lower in Scotland, Wales, the North-West and North-East England as well as the East Midlands. The biggest fall in rental prices is in the North-West of England, where rents paid for new tenancies last month were, on average, 3.5% lower than those paid on new tenancies in July.
Elsewhere, rents were up by 1.9% in the West Midlands, and by 1% in the East Midlands and Northern Ireland.
Commenting on the report, Martin Totty, Barbon* Insurance Group’s Chief Executive Officer, said: “August can traditionally be a slower month for the rental market and similar dips have been seen in rental prices in previous years. Nevertheless, the cooling in the rental sector may prove to represent the beginning of a trend towards a more settled market after several months of much more significant growth. A similar cooling has been seen in the wider housing market, with house price indices recording an easing of house price growth.”
On an annualised basis, however, rental growth continues to show strength, with only the North-East and the East Midlands reporting lower rents for new tenancies in August than in the same month of last year. In London, rents were up by 11.4% on a year ago, while East Anglia (8.4%) and the South-East (5.3%) have also been strong performers. Across the UK, the average UK private home rent
rose by 8.2% over the year to August 2014. The average rent in the UK now stands at £921 a month, compared to £851 a year ago.
Rental figures from the August 2014 HomeLet Rental Index
Martin Totty continued: “While a calmer period for the rental sector is likely to be welcomed by landlords and tenants alike, with affordability concerns having increased in some parts of the country in recent months, demand for rental property is set to remain strong.”
HomeLet Rental Index Monthly Regional Variance Figures
About our data
HomeLet Rental Index provides the most comprehensive and up to date data on new tenancies in the UK. As part of the referencing process for around 350,000 prospective tenants each year, HomeLet processes information including the rental amounts agreed, the number of tenants moving into the property, together with the employment status, income and age of all tenants. The trends reported within the HomeLet Rental Index are brand new tenancies which were arranged in the most recent period, giving the most relevant insight into changes in the Private Rented Sector. This is in contrast to many other rental indices which are based on all properties which are being managed, which may have had rental amounts agreed as long as two years ago.