In the face of uncertainties in the market the rent levels of the UK have been holding up well according to new figures.
Since last January the average rent across the UK has reached £932, an increase of 2.5% reports Homelet’s Rental Index. This growth has been consistent across the UK even when the capital is excluded. Taking London out of the equation the average rent has still increased by 2% to £775.
Within the capital rents have increased to £1,588 per month on average, an increase of 3.7%. Most of this increase has been attributed to potential buyers waiting for the fallout of Brexit before pulling the trigger on a purchase. Only one region in the UK recorded a fall in average rents, a 0.6% decrease in rents in the north-east.
Whilst the south-west has led the way with average rents rising by up to 5.3% (£859pcm) the major cities of Manchester, Birmingham and Liverpool have helped their respective regions achieve strong growth. The west midlands is up to £698pcm (2.8% increase) and the north-west is up to £703pcm average rent (2.9% increase).
There are very reassuring signs in the data provided, according to Homelet chief executive Martin Totty, saying: “Positively for both tenants and landlords, this year we’ve seen stability in UK rental price growth, with increases remaining broadly in line with the rate of consumer inflation.”
“For landlords there remains a sustained demand for property, with the private rental sector continuing to provide the market with both flexible and long-term housing options.”
“The slowdown in the rate of house price growth, as reported by the Nationwide House Price Index is being driven by the depressed London market, which saw house prices decline by 0.8% during the last four months of 2018. In contrast, we have seen average rental values in the capital rise by over 4% in the latter stages of the year. Ultimately, we would expect this theme to continue in London, if the demand for property outweighs supply.”
“Private residential landlords will continue to play a key role in the wider UK housing market. Whilst the outlook for property investors remains positive, one of the key concerns for the market in 2019 would be a potential lack of supply in certain regions.”