Average rents in London increased in August but remain down year-on-year. Research from Move with Us showed Greater London saw 1.74 per cent rental growth last month, pushing average prices across the country upwards by 0.3 per cent. This is the first time since March that rents have increased in the capital, bringing asking prices to an average of GBP 2,191 - more consistent with performance in the first quarter of the year.
During the summer, average rents in London dropped by around GBP 50 and despite August's rise, they are still down 3.38 per cent on 2012 levels. This is consistent with the rest of the country, where advertised rents stabilised or declined marginally. In most regions, rents fell between 0.5 per cent and one per cent.
Outside of London, East Anglia was one of the strongest performing regions, with advertised rents falling by 0.73 per cent for the first time this year in August. While this is a drop of GBP 6.29 per month, rents are still up GBP 20 on levels experienced at the beginning of 2013. Prices are even greater in the south-east, with the average rental price standing at GBP 1,160 per calendar month. Between April and June, rents increased by nearly GBP 40. However, a rise of just 0.31 per cent in Augusts suggests prices may be stabilising.
Meanwhile, in the north-east, north-west, Wales and Yorkshire and the Humber, rents reached their lowest point in this calendar year. However, with property asking prices still low in places like Humberside, it is possible for landlords to maximise yields in these parts.
Robin King, director of Move with Us, said: "August was a good month for tenants, as most regions in Great Britain witnessed a fall in rents. The South East and London continue to perform strongly as the most expensive regions and have remained strong in a month where other regions have witnessed small declines in rent, most notably East Anglia, which has been one of the best performing regions in 2013."
- Tuesday 17 September 2013