The country's landlords are continuing to benefit from increasing rental yields, with prices in 2013 consistently higher than the average rents received in 2012. According to the latest HomeLet Rental Index, which shows agreed rental prices rather than advertised rates, the average cost of renting a home in the UK stood at GBP 774 in March this year.
Though this is a decrease of 0.4 per cent on the figure recorded in February this year, average rents are still 1.8 per cent higher than in March 2012, with seasonal fluctuations giving way to a more solid yearly rise. The trend is being driven by London property, with average rents in the capital now standing at GBP 1,227 per month, which is 6.5 per cent higher than the same time last year.
Andy Richards, HomeLet's business development director, commented: "London's private rented sector has been the subject of much discussion recently, particularly around how costs are soaring in the capital, and how regulation in the region may lead to a cap in costs so tenants aren't subject to such steep rises in costs."
Though rents in the capital do appear to have slowed down, demand for rental property is still increasing, and Mr Richards said a balance now needs to be struck between landlords reaping a "lucrative return" from their investment and tenants being able to cope with living costs. As has been the trend in recent months, the national average rental cost is being driven up by prices in the capital, which far exceed any other region.
Though rents are rising steadily around the rest of UK, major fluctuations do exist, particularly in the north-east, which experienced a 16.8 per cent rise from February and a 15.7 per cent year-on-year increase to stand at GBP 590 a month. Wales saw the biggest decrease for the second consecutive month, meanwhile, with average rents falling by three per cent to stand at GBP 544 a month.
- Friday 26 April 2013