Latest findings have indicated that the gap in rental prices between London and the rest of the U.K is closing.
Results from the newest HomeLet Rental Index reveal that the average rent for properties in London have remained at a similar level during the previous three months. However in the rest of the country, prices have predominately risen.
Figures released for February show that seven out of twelve areas in the U.K have experienced increases in rent prices during the past three months. Prices in the North East of England rose sharpest, showing an increase of 3.1%. The South West also showed a substantial increase of 2.5%. Average rent prices in the U.K as a whole rose to £899 from £873 in December 2014.
The remaining five areas, in which prices have not increased in the last three months are Greater London, the East and West Midlands, Wales and Scotland.
Rental Price Gap Closing
Findings from the report also suggest that prices for new tenancies have risen substantially in some areas. Prices in Northern Ireland saw an increase of 7.2%, with the North East of England recording a 6.2% rise. Other areas where prices of new tenancies increased include the South West and East Anglia, where prices rose by 4.5% and 3.7% respectively.
Rents for new tenancy price agreements in London however fell by 2.5% and prices in Scotland, Wales and the East Midlands also saw a dip in rents.
Responding to the figures, Martin Totty, CEO of Barbon Insurance, the parent company of Homelet, said that the rental market in the U.K was becoming more widespread. Mr Totty noted that, ‘2014 saw the London rental market outstrip the rest of the UK in terms of rent price growth. ‘ He went on to say however that, ‘what we are seeing so far in 2015 is the private rental market becoming much more broad-based, with the strongest rent price growth occurring outside of the capital.
Mr Totty also stated that, ‘other regions of the UK such as the South West of England and East Anglia are maintaining the rises achieved in 2014 and continuing to grow.’