Our latest HomeLet Rental Index has been released, and it highlights some very interesting data. Here, we take a look at the headlines, including the fact that in the three months to January, average rental values for new tenancies in the UK were 8.9% higher than in the same period last year.
This 8.9% rise in rental values for new tenancies means that average rental rates have risen to £878pcm compared to £806pcm in the same period last year. The data is gathered from our tenant referencing service, and the rental amounts are based on the actual achieved rental prices for new tenancies in the reported month.
The data in detail
The annual growth in average rental values for the three months to January (8.9%) was higher than in 2014 (3.8%) and 2013 (4%), and saw the average rental value for new tenancies rise to £878pcm. However, although rental rates for new tenancies rose during that three month period, it should also be noted that tenant incomes rose, too. In the three months to January, tenant incomes were 6.2% higher than they were in 2014.
Our data shows that the majority of regions across the UK saw an increase in rental values in the last twelve months. The three regions that saw the highest increase in this rate were Greater London (12.3%), Scotland (10.8%) and the South West (7.3%). Regions that saw reductions in comparison to last year were Wales by 1.4% and North West by 1%.
With the average rental rate for London increasing by 12.3% since the same period last year, average rates for new tenancies in the three months to January reached £1,412pcm, which was £155 more than when compared to average rental values in the same period in 2014 (£1,257pcm). Our latest Rental Index release shows that from December 2014 to January 2015, average rental values in the capital have risen by 2.3%.
If we exclude London from the data, the average rental value for a new tenancy in the three months to January was £702pcm, a rise of 3.7% from last year, when the average rental rate was £677pcm.
Finally, the figures in January’s HomeLet Rental Index reveal that, after a period of seasonal adjustment towards the end of 2014, where rental prices fell in many areas, that the rental market has begun to recover and has started to return to growth once more.
Average UK rental amounts over the last three months, with annual comparisons
If you would like to see the full Rental Index, including a full regional breakdown of the data, click here.
All data correct as of 02/03/2015
All figures taken from the HomeLet Rental Index
Image Courtesy of Shutterstock.