UK average rents rise for first time in three months, new study reveals

Average rents in the UK have risen for the first time in three months, according to a rental index.

The average monthly rent agreed on a new tenancy signed in July was £925 – rising from £915 compared with the same month last year, private rented sector insurance provider Homelet said.

Prices rose 1.1 per cent on average across the UK as a whole following two months of small declines of 0.3 per cent and 0.2 per cent in May and June respectively – the first time rents had fallen since 2009.

But the market in Greater London has yet to recover to July 2016 levels, lagging behind the rest of the country and down 0.6 per cent on last year.

England’s South-east and North-east also saw declines on the same period last year but all other regions saw annual rental inflation, including by as much as 5.7 per cent in Northern Ireland and 3.6 per cent in Scotland.

Homelet’s chief executive officer, Martin Totty, said the rises could be explained by a “seasonal” increase in tenants looking to move and when rental agreements are renewed.

He added: “At the same stage last year, the South-east was the main driver of UK average rents. This time around, it’s the regions leading the strengthening in rents. If we exclude the London region, the average UK rent for a private rental property has hit a new high of £769 a month, up 1.6 per cent on this time last year.

“Whether the market has now found some equilibrium remains to be seen, but landlords at least will be grateful for even some short respite.

“Predicting where the market heads from here is very difficult given the number of competing forces, either already being felt or still being contemplated.”