Average rents for new tenancies in UK up just 1.1% year on year

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Average rents for new tenancies in UK up just 1.1% year on year

Average rents in the UK continue to see a slower rate of rental growth in March compared to last year with values for new tenancies up just 1.1% nationally.

But there is some regional variation with asking rents up 3.1% year in year in Wales, up 1.5% in Northern Ireland and up 1.2% in Scotland.

Overall the national average was £904 per calendar month. In Wales it was £616 in March, in Northern Ireland £614 and in Scotland £610, according to the latest index from HomeLet.

But the highest rents are in London at £1,546 per calendar month, up 1.2% compared to March 2016. However, since July 2016 rents in London have seen a slower pace of annual growth, down from 6.8%.

Month on month rents increased across the UK apart from the North East where they were static and the North West where they fell by 0.7% to an average of £522 and £675 respectively.

The biggest month on month rise was in Wales with an increase of 2.3%, followed by Scotland with a monthly rise of 2.1% and a rise of 1.7% in Northern Ireland.

Meanwhile, rents increased by 1.1% in the East Midlands, by 0.9% in the South West, by 0.7% in the East of England, by 0.6% in the West Midlands, and by 0.5% in the South East to an average of £602, £798, £902, £663, and £997 respectively.

An analysis of the figures show that average rental values in London were 70.9% higher than the rest of the UK and the gap between London and the rest of the UK was comparable to March 2016 when it was 70.8% and higher than March 2015 when it was 67.3%.

The London boroughs with the highest rents are Camden and the City of London at £2.186, followed by Westminster at £2,041, Lambeth at £1,937, then Hammersmith, Fulham, Kensington and Chelsea at £1,823.

In contrast, the London boroughs with the lowest rents are Croydon at £1,101, Barking, Dagenham and Havering at £1,162, Bexley and Greenwich at £1,223, Redbridge and Waltham Forest at £1,253 and Harrow and Hillingdon at £1,339.

Source: www.propertywire.com