Average rents for newly let properties rose by 4.5% in Q1 2015 to £894pcm, according to new findings from Countrywide’s Quarterly Lettings Index. This was up from £853pcm in Q4 2014.
Newly let rental properties
In the first quarter of this year average monthly rents also rose for one and two bedroom properties in comparison to Q4 2014. Meanwhile, rents on three and four plus bedroom properties remained stable, with only a 0.1% fall to £939 and £1,435pcm respectively.
Nevertheless, when comparing March 2015 to February 2015, rents went up by 1.6% and 16.4% for three and four bedroom properties.
Looking at things from a regional perspective, average monthly rent in Q1 2015 shrank in more than half of UK regions, with the greatest drop seen in the South East of England (down 1.9% to £1,097pcm). The greatest fall in average rent on a month by month basis was witnessed in Central London, down 4.4%
The average UK rent for renewed tenancies in March was £848pcm, a rise of 0.8% month-on-month and 2.3% year-on-year. Regionally, the only fall in rents in March was witnessed in Central London, down 2.3% on February to £2,485pcm. Every other region saw no change or a rise in rents, with Wales enjoying the biggest uplift (up 13% to £654pcm).
The average rent for all occupied rental properties was £840pcm, a growth of 0.2% month-on-month and 2.4% year-on-year.
“Stable rents and declining arrears reflect healthier economic conditions in the UK rental market in the run up to the General Election,” Nick Dunning, Group Commercial Director at Countrywide, said.
“Zero inflation and rising incomes means that on average the cost of living has decreased and this is having a positive impact of consumer’s confidence and disposable income.”