UK Property Rental Prices Reach New Record High

UK Property Rental Prices Reach New Record High

UK Property Rental Prices Reach New Record High

Latest figures show that the new national average property rental price being advertised has reached a whopping £1,006 (GBP) per calendar month (pcm).

This is the first time ever that the national average property rental price has broken the 4 figure ceiling barrier in the UK.

The increase in the national average property rental price has been attributed to continued growth of the London and South East property markets.

Property rental prices being advertised in central London have reached £2,300 (GBP) per month, the highest recorded rental average apart from during the Olympic’s in the summer of 2012.Some economists are predicting that the London rental market may peak within the next 12 months as property rental prices have already increased by almost 5% or £103 (GBP) in the last year.

The rental market in Scotland is also experiencing a resurgence, with average advertised property rental prices improving continually since November 2013 to reach a record £726 (GBP) per month.

The Scottish rental market has grown by more than 7% (around £50) since May last year and there is little sign of a slowdown in the upward trend, as the region has been one of the most stable in the UK over the last two years.

However, there is less positive news for landlords with rental properties in the North of the country as the average advertised property rental prices in the North West, Yorkshire & Humber and the North East fell during May.

Property rental prices in the North East have now slumped to a two year low with average rental prices falling to just £639 (GBP) per month. Below is a list of the biggest changes in average property rental prices over the last year:

  • Scotland: £726 (+ 7.50% in past 12 months)
  • South East: £1,207 (+ 6.87% in past 12 months)
  • Wales: £668 (+ 5.74% in past 12 months)
  • West Midlands: £688 (+ 5.56% in past 12 months)
  • Greater London: £2,302 (+ 4.68% in past 12 months)
  • South West: £817 (+ 3.13% in past 12 months)
  • East Anglia: £906 (+ 2.66% in past 12 months)
  • East Midlands: £635 (+ 1.90% in past 12 months)
  • North West: £621 (-2.12% in past 12 months)
  • North East: £639 (- 5.77% in past 12 months)

The South of the UK is following a steady growth path and the North is still lagging behind as there isn’t the supply of suitable property coming to market to keep up with demand from would be tenants for renting properties in the UK’s private rental market.

Rising property prices in London and the South East have made a significant contribution to the national average property rental prices exceeding £1,000 (GBP) for the first time.

Increasing capital appreciation may be good news for landlords, but the higher cost of renting property is impacting on the finances of tenants across the whole of the country and the best solution to lowering the cost of renting is to build more residential properties.

Sign Up For Our Newsletter
Join over 10,000 subscribers receiving our newsletter containing weekly UK Property Networking Event details, Educational & Business opportunities & Property Investment Deals
We hate spam as much as you do! We promise that your details will not be shared with anyone else.

Comments are closed.

There Will Never Be A Better Time To Invest In Property

MyPropertyPowerTeam.co.uk helps property investors and landlords build their own property power team to enable them to profit from property - Visit our main site now!