Average rents in the UK up and new tenancies all see considerable growth

National average rents in the UK continue their upward trend and new agreed tenancies are at a three year high across the country, according to the latest index report.

Article Image
Average rents are now £781, up 11% annually, and have overtaken the record level recorded in August while new tenancies are up 5% month on month and 7% annually, the Sequence Group index shows.

The data also shows that in London’s average rents stand at £1,456, growth of 7% annually and tenant demand in London is up 1% on the month, with five applicants per property.

This comes at time when the supply of rental properties is falling. The number of new rental properties is down 4% nationally and down 5% in London. There is also an increase in buy to let mortgages, up 15% on the month and up 46% annually as buy to let continues to be a popular investment choice.

‘As the sales market ignites the rental market continues to grow. The flexibility of renting remains attractive to tenants although we are noticing that renters are looking for more security in this fiercely competitive market.
This has pushed the average length of tenancies from 12 to 19 months,’ said Stephen Nation, head of lettings at the 300 branch Sequence Group which includes Barnard Marcus, William H Brown, Fox & Sons and other leading brands.

‘New agreed tenancies are at a three year high with levels of demand up 9% annually across the UK and average national rents are also up 11% annually. The buoyancy of the market and low interest rates are continuing to attract buy to let investors in their droves, with the number of applications for buy-to-let mortgages up an unprecedented 46% annually, which is the largest annual growth for three years. This growth should impact supply over the coming months so we expect to see the number of properties available increase before the end of the year,’ he explained.

He pointed out that the London market remains defined by a supply deficit, with more than five people applying for every new rental property. ‘This disparity has been caused by a 1% monthly increase in tenant applications, coupled with a 5% monthly decrease in supply. If this under supply continues it could continue to push rents up further in the capital,’ he added.


For more information speak to one of our experts on: 01865 481491 or email: info@mlp-uk.com

Latest Articles

2nd April 2015 UK Regions See Rental Growth
10th February 2015 Manchester Named as Buy-to-Let Hotspot
28th January 2015 One Smithfield Square Completes
20th November 2014 Reading top for technology businesses according to KPMG report
7th October 2014 Stratford to benefit from 24-hour weekend tube services
3rd September 2014 Manchester Tops the Growth Table
7th August 2014 Fewer tenants facing rental arrears in the UK
11th July 2014 Rental costs in UK rising, but tenants can afford it, latest index suggests
23rd June 2014 Renting costs less than owning thanks to house prices
17th June 2014 Reading nets buy-to-let investors increased returns
2nd June 2014 Buy-to-let to overtake pensions as primary retirement finance
29th May 2014 Manchester included in buy-to-let hotspots
7th February 2014 Is London a drain on other UK cities?
7th February 2014 Reading is named as best in the UK for employment
27th November 2013 Renting is more affordable than buying across more of London, index shows
21st November 2013 Government takes more steps to force all letting agents to join redress scheme
13th November 2013 Modern Living Properties complying with the new rules for property ads
7th November 2013 UK private rental sector rents set to grow by over 20% by 2018
5th November 2013 Landlord advice: how to maximise return
29th October 2013 Energy prices: the world's cheapest and most expensive places
29th October 2013 Home insurance premiums continue to drop
29th October 2013 Confessions of a removal man: 'We emptied the wrong house'
24th October 2013 Average rents in the UK up and new tenancies all see considerable growth