September 2016 - Student check-ins drive up rents in England and Wales
Regions outstrip London growth
While London has long been the centre of the UK’s rental scene, other areas of the country are now matching and even out performing the capital city, Your Move found.
Rents in the London grew 6.9% in the last 12 months to reach an all-time high level of £1,391. However, this performance was bettered by the South East where rents reached £975 per month in August. Data suggested this increase in the South East was buoyed by students moving into new rental properties ahead of the new university year. Rent increases are not expected to maintain this level of growth to the end of the year!
Other regions to outperform the capital included the North East. This region saw rents up 12.3% in the same time period and properties in this area now let for an average of £583 per month.
The North East has provided many popular locations for investors, encouraged by low house prices and strong returns on their investment. Yorkshire and the Humber (£580 per month) is the cheapest place to rent in England and is just 42% of the cost of renting in London.
On a monthly basis all but two areas saw rents increase between July and August.
This suggests that the UK’s decision to leave the European Union continues to have little short-term impact on the rental market. Across all regions of England and Wales rents increased by an average of 4.8% month-on-month.