The average rent across the UK is now rising in line with Greater London for the first time and at the fastest rate since the start of the HomeLet Rental Index in 2008.
The latest data from the referencing firm shows that rents agreed on new tenancies in the capital over the three months to the end of April were 7.5% higher than in the same period a year ago. This is in comparison to a 7.4% rise across the rest of the UK.
Following a year of London rents growing at over twice the rate of the UK average, growth rates have now come together. This demonstrates a slowdown in the growth of rents in the capital and a speeding up elsewhere in the UK.
From a regional perspective, 11 out of 12 regions experienced price rises in the three months to April 2015, highlighting the steady growth in rent prices across the country. HomeLet’s figures show that the average rent on a tenancy signed in the UK during the three months to April 2015 was £916, in comparison to £833 for the same period a year ago. Meanwhile, the average rent in Greater London currently stands at £1,436, compared to £1,336 for the same period a year ago.
“For the first time we are seeing rent price growth rates in Greater London converge with those across the rest of the UK,” Martin Totty, CEO of Barbon Insurance Group, parent company of HomeLet, said.
“During 2014, London rent price growth far outpaced other regions but in 2015 we are seeing the emergence of a different pattern. What this tells us is that the private rental market is experiencing demand nationwide and that it is not simply a London phenomenon that increasing numbers of people are requiring privately rented property.”