The number of new rental property listings increased by 2.4% during August compared to the same month a year ago, the highest rate of annual inflation for 10 months, according to the latest data from the Agency Express Property Activity Index.
Looking at performance across the UK, 11 of the 12 regions recorded a rise in rental prices by the Property Activity Index; the average monthly rent now stands at £939 per month.
Rents in London rose 2.5% in August year-on-year, following three successive months of decline; the average monthly rent in the capital now stands at £1,609.
When London is excluded, the average rent in the UK is £776 per month; up 2.3% year-on-year.
Rents rose fastest in the South West of England (up 3.9% compared to August 2016) and Northern Ireland (3.7%), with only the South East (-0.2%) recording a decline.
HomeLet’s chief executive officer, Martin Totty, said: “Whilst we’ve often observed a seasonal uplift in average rents at this time of year, there’s evidence of a trend now emerging which points to a reversal of the declines seen over the early part of this year. This will be welcome relief to Landlords who have been battered by the perfect storm of tax changes and post-Brexit uncertainties. Whether the trend continues or represents only temporary relief from the headwinds faced by property owners, the remaining months of 2017 should provide the answer.”
“Whether the recent strengthening in rents achieved, seen generally across all regions of the country, is driven by more robust demand or by some restriction of supply is hard to judge. Either way, landlords will only be encouraged to invest in property over other assets if they’re convinced they can achieve reasonable returns. If not, then the supply of rental properties could become constrained.
“Many landlords still face further increases in their costs and so will need to find a new equilibrium between their legitimate required returns and affordability for tenants. It seems the elements in solving that particular equation become ever more complex.”
August 2017 HomeLet Rental Index
|
Region
|
Average rent in August 2017
|
Average rent in July 2017
|
Average rent in August 2016
|
Monthly variation
|
Annual variation
|
|
South West
|
£838
|
£823
|
£805
|
1.8 %
|
3.9 %
|
|
Northern Ireland
|
£634
|
£625
|
£610
|
1.4 %
|
3.7 %
|
|
West Midlands
|
£693
|
£680
|
£670
|
1.9 %
|
3.3 %
|
|
East Midlands
|
£617
|
£620
|
£597
|
-0.5 %
|
3.2 %
|
|
North East
|
£538
|
£526
|
£524
|
2.3 %
|
2.7 %
|
|
East of England
|
£926
|
£919
|
£901
|
0.7 %
|
2.6 %
|
|
North West
|
£703
|
£698
|
£685
|
0.8 %
|
2.6 %
|
|
Greater London
|
£1,609
|
£1,564
|
£1,569
|
2.9 %
|
2.5 %
|
|
Scotland
|
£629
|
£630
|
£616
|
-0.1 %
|
2.0 %
|
|
Wales
|
£626
|
£613
|
£615
|
2.1 %
|
1.8 %
|
|
Yorkshire & Humberside
|
£630
|
£625
|
£621
|
0.8 %
|
1.5 %
|
|
South East
|
£1,028
|
£1,025
|
£1,030
|
0.3 %
|
-0.2 %
|
|
UK
|
£939
|
£925
|
£916
|
1.5 %
|
2.4 %
|
|
UK excluding Greater London
|
£776
|
£769
|
£759
|
0.9 %
|
2.3 %
|
|
Notes:
|
Based on new tenancies in August 2017
|
Based on new tenancies in July 2017
|
Based on new tenancies in August 2016
|
Comparison of average rent in August 2017 and July 2017
|
Comparison of average rent in August 2017 and August 2016
|
HomeLet Rental Index Regional Variance Figures for August 2017
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