Rents up as demand exceeds supply
Date online: 13/02/2015
In January 2015, the average rent for newly let properties in the UK was £883 a month up from £859 a month in January 2014, an increase of 2.8%. One and two-bedroom properties saw the greatest increase in rent up 8.5% and 3.6% to £751 a month and £810 a month respectively. Three-bedroom properties saw a 1.6% increase to £930 a month, whilst four-bedroom plus properties saw a 3% decrease to £1,345 a month.
The research also found that the average UK rent for renewed tenancies is now £835 a month. One-bedroom properties saw the greatest increase in rent year-on-year, up 3.3% to £681 a month, followed by two-bedroom properties up 1.9% to £763 a month and three-bedroom properties up 1.7% to £875 a month.
Four bedroom plus homes saw rents stay broadly the same with just a 0.2% decrease in average monthly rent to £1,350 a month.
Arrears have decreased year-on-year in all regions apart from the North of England where they have stayed the same, and Central London where there has been a marginal increase of 0.6%.
Nick Dunning, group commercial director at Countrywide plc, said: “Renting is a flexible and relatively hassle-free way of living which suits many people's lifestyles. It allows them to settle in a location where perhaps they couldn’t afford to buy but they enjoy living in. With a growing population of lifetime renters, increasing the amount of good quality, affordable rental accommodation is needed to meet this demand.
“With banks making it easier for landlords to offer longer tenancies and with more competitive buy-to-let mortgage products available, now is an ideal time for landlords to expand their portfolios and provide a more diverse range of affordable rental properties throughout the UK, not just in London and the South East as many would expect.”