- Rents rise in seven out of twelve regions across the UK in the three months to February 2015
- London rent prices static in the three months to February 2015
- The North East and South West of England lead rent price growth in 2015 to date
- Average rent in the UK is now £899 (£724 excluding Greater London), an increase of 1.1% on January 2015
New findings from the HomeLet Rental Index have revealed that after a period of rent price rises in London outstripping the rest of the UK, the disparity between the growth rate of the London and nationwide rental markets is beginning to narrow. Average rent prices in London have remained static in the three months to February 2015, versus the wider picture of predominantly rising prices. The average rent in the UK is now £899, compared to £889 at the end of January 2015, and £873 in December 2014.
The HomeLet Rental Index figures for February 2015 reveal that seven out of twelve regions in the UK have seen rent prices rise in the three months to February 2015, with the North East and South West of England leading the way at 3.1 per cent and 2.5 per cent price growth respectively.
Average rent prices over the three months to end-February 2015 also reveal growth in East Anglia, the North West of England, Northern Ireland, the South East of England and Yorkshire & Humber. Figures for the three months to February 2015 show that prices have not increased in Greater London and the West Midlands, and have fallen in Wales, the East Midlands and Scotland.
Looking solely at new tenancies commencing in the month of February 2015, prices have increased in the month since January 2015 in several regions, with Northern Ireland rising 7.2 per cent, the North East of England by 6.2 per cent, the South West of England by 4.5 per cent, and East Anglia by 3.7 per cent.
In contrast, rents agreed on new tenancies in London in February 2015 have fallen by 2.5 per cent compared to the previous month. Scotland, the East Midlands and Wales have also seen prices agreed on new tenancies fall in February 2015 compared to January 2015.
Commenting on the report, Martin Totty, Chief Executive Officer, Barbon Insurance Group, parent company of HomeLet, said: “2014 saw the London rental market outstrip the rest of the UK in terms of rent price growth but what we are seeing so far in 2015 is the private rental market becoming much more broad-based with the strongest rent price growth occurring outside of the capital. Other regions of the UK such as the South West of England and East Anglia are maintaining the rises achieved in 2014 and continuing to grow.”
“The rent price growth seen in London during much of 2014 now appears to be slowing. However a recent survey we conducted with London letting agents has shown that demand for private rental property remains high and still outstrips supply, with 80 per cent of agents saying there are more tenants than properties available.”
Rental figures from the February 2015 HomeLet Rental Index
HomeLet Rental Index Regional Variance Figures for the three months to end–February 2015
HomeLet Rental Index Figures for new tenancies agreed in February 2015
About the HomeLet Rental Index
As well as information on rental amounts, the HomeLet Rental Index also provides information on tenant demographics, such as their average age, income, previous residential status and property type they’re applying to live in. In addition, data is gathered on how many people share a rented property –to get a real feel for the lifestyle of tenants and see how external factors, such as the lack of mortgages and increase in unemployment, are affecting how and where people live.
Data is gathered from HomeLet’s tenant referencing service, and rental amounts are based on actual achieved rental prices with accurate tenancy start dates in a reported month, rather than advertised costs. Up to 1,700 applicants are referenced every day, so information in the report is extremely comprehensive, accurate and up to date.