Homelet’s Rental Index figures for August 2018 have been released, and despite regional differences, UK wide, rents are increasing steadily at the rate of 1.3% against the previous year.
As the UK’s largest tenant referencing firm, HomeLet reference 500,000 tenants every year. The HomeLet Rental Index provides the most comprehensive and up-to-date data on rental values in the UK.
The average rent in the UK is now £947, up 0.9% on last year, although this is of course influenced by higher rates in London, where the average rent is now £1,632, up by 1.4% on last year and up 1.1% on July 2018, when the average rental price broke £1,600 for the first time.
When these higher than average London rents are excluded, the average rent in the UK is now £786 per month, up by 1.3% on last year.
The region showing the largest year-on-year increase is Scotland, where there was a whopping 5.6% increase between August 2017 and August 2018, and a 2% increase between July and August 2018. Previous press reports have speculated that rental prices across Scotland are being boosted by increasing demand and higher rents in Glasgow and the Highlands.
Rents have risen this month in in all 12 of the regions monitored by HomeLet, however rents in the North East, South West, Wales and the East of England have seen a decrease in the rental prices when viewed against the same time last year.
Martin Totty, chief executive at HomeLet, said:
“In contrast to house prices, which show more noticeable cyclical variations over time, especially in areas of the country where the imbalance between demand and supply is more pronounced, UK-wide rents in August increased around 1% compared with both the prior month and the same month last year.
“Our data demonstrates that the rental sector is showing a return to the long-term trend of steady, often below-inflation price growth. This makes the private rental sector an attractive alternative to the risk of entering, or exiting, property ownership at the wrong point of the cycle for tenants, landlords and lenders.”
Head to https://homelet.co.uk/homelet-rental-index/ to learn more.