March 2017 - East and South East rents rise as demand outside London rockets
Renters look beyond London
The pressure in the London rental market has continued to slow this month as rents edged downwards in February.
The average rental property in the capital let for £1,280 during February 2017, 1% lower than the same point a year ago. This figure was also 0.5% down on January’s total of £1,286.
London was the only region surveyed to see rents fall on both a monthly and yearly basis.
This suggests renters in the city have reached an affordability ceiling and are now looking outside the capital for properties. The counties surrounding London have seen rents increase rapidly over the last year as people move to these areas instead.
Rents in the East of England grew by 5.6% in the last 12 months to reach £868, although they did drop back 0.2% between January and February. In the South East the typical rent increased 3.4% year-on-year, with a 0.1% rise month-on-month. The average property in this region now lets for £878 a month.
However, it was in Wales where the fastest rising rents were to be found. The typical rental property increased in price by 7.7% in the year to February, although Wales remains one of the cheapest places to rent in this survey at £593 a month.
The North East (£545 a month) and Yorkshire and Humber (£566) were the only regions with cheaper rents than Wales.
Finally, London was not the only area to see rents fall year-on-on year. In the South West prices went down 1.5% during the past 12 months to hit £662. Areas in the south have a surplus supply of property for tenants which can cause rents to fall as landlords lower rates to suit the market.