The HomeLet Rental Index
January 2014 headlines...
- The average cost of renting a home in the UK decreased by 1.7% during January to £800 per month
- Despite the monthly drop, rents are 2.4% higher than in January 2013
- The average UK rental amount for the last three months (three months up to January 2014) is £806 per month – a 3.3% increase on the same period as last year
- When the Greater London figure is removed, the average cost of renting a home in the UK decreased by 2% during January to £670 per month
- It is currently 88.4% more expensive to rent a home in the capital than the rest of the UK (when the Greater London figure is removed)
January 2014 monthly change in UK rental prices
Rental index quick links
January 2014 commentary
Provided by Gary Abraham, HomeLet's Sales and Marketing Director
“Our latest data certainly shows that the rate at which rental values are increasing has slowed down following the rapid growth we saw immediately after the 2008 housing crisis. However, whilst more people are buying, a reported increase in house prices means that buying remains unaffordable for many, particularly in the capital, and some would-be-buyers may worry about the prospect of factors like negative equity or large deposits.
“A lack of affordable housing stock in the south could be one of the drivers for the growing divide that we’re seeing between rental values in the north and the south. Our data shows that the difference in cost between renting a home in the south compared to the north has increased for the sixth consecutive year. It’s currently 69% more expensive to rent a home in the south (Greater London, South East,
South West) when compared to the rest of the UK. This is significantly more than in January 2008 when the difference was just 37%.
“Whilst the owner occupied market might be stabilising, the private rented sector is becoming a much longer term housing solution for many. We’re seeing a combination of increased average tenant ages, increased income and previous tenancy length.
“This month’s HomeLet Rental Index data shows the average age of a tenant increased during the past 12 months to reach 34. We also saw average income of tenants across the UK increased by 5% over the same period to £28,500 per annum and previous tenancy lengths increase by 6% to reach an average of 21.4 months.
“As ever the demand that drives rental values in more popular areas is localised, with some regions seeing much more dramatic fluctuations in amounts than others. Specific property types in certain areas, such as larger family homes that come on the market less frequently, could be a contributing factor to this.
“I believe the private rented sector will continue to expand in 2014, but frequency that tenants move will decrease. And whilst rents will continue to rise marginally year-on-year we won’t see the dramatic increases in rental values that we’ve seen in the past few years.”
Regional rental prices
The HomeLet Rental Index includes a regional map which shows the monthly and annual changes in agreed rental amounts for each region of the UK.
Rents in London
Each month the HomeLet Rental Index focuses on Greater London to provide an insight into activity within the Private Rented Sector in the Capital.
Which postcodes fall in each region?
The HomeLet Rental Index includes data from across the country and we provide high level regional breakdowns to indicate how rents are performing in that particular area of the country. Click below to find out which postcodes go where...
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