The average advertised rent in Great Britain increased by £62 (6.56%) in July 2014 compared to the same time last year, reaching £1,029 per month, according to Move With Us.
National rents surpassed the £1,000 per month mark in June 2014, and since then have continued to climb steadily, rising an average of £11 per month over the past four weeks.
Contributing to the sustained national growth is the average rent in Greater London which stood at £2,376 per month in July and showed no signs of abating having increased consistently for the last 12 months. On average, renting a property in the capital is now £43 more expensive that it was at the beginning of July and £223 (10.11%) per month more expensive than July 2013 when rents reached a low of £2,148 per month.
These improving markets conditions are not limited to the capital. A monthly increase of £9 in the South East means properties in the region are also becoming more expensive to rent, with average prices £90 (8.07%) per month higher than the same time last year.
Average advertised rents in East Anglia, traditionally an expensive marketplace given its commuter connections to London, averaged at £948 per month in July. As rents continue to increase, this month by £13, it would not be unexpected to see average advertising rents overtake the £1,000 per month mark within the next 12 months.
As house prices in Scotland stalled in July, the rental market flourished. Average rents stood at £737 per month in July, approximately £60 per month more than when compared to the same time last year. Other northern regions also experienced growth in July. The North West saw a slight decline over the last 12 months of 1.43%, with average advertised rents at £625 per month in July 2014.
Robin King, director of Move with Us, said: “Typically if the sales market improves, the rental market falters and vice versa. However, any fears that the rental market would decline as the sales market sprang back to life have now been allayed. The rental market has continued to grow alongside the sales market. It’s as strong as it’s ever been.
“For once it’s not just the South that’s driving climbing advertising rents as improvements have spread up to the northern regions too. While the North West was the only region where the average advertising rent declined in a yearly comparison, we expect to see rents in this region increasing in the coming months.”