July has seen a significant stabilising of advertised rents when viewed against previous months in 2013, according to Move with Us’s latest Rental Index.
The growth in the rental market witnessed before the summer has slowed, or in some cases, reversed so that the advertised rents in many regions are now down against those of the last few months.
Whilst advertised rents across all of the northern regions remain up on those of a year ago, monthly figures are down and in the case of Yorkshire & Humber, the average rent has fallen below the £600 mark for the first time this year.
Robin King, director of Move with Us, said: “Overall, average advertised rents in the UK are stable with moderate growth, which has been the trend of late.
“Whilst rents in London are down compared to this time last year, they continue to isolate many tenants who are choosing to live outside of the city.
“As a result, the prominent commuter regions of East Anglia and the South East have increased again in July, as tenants look to access the Capital’s work and social opportunities without the cost of a London property.
“With asking rents in these regions rising every month in 2013, buy-to-let investors should keep a close eye on these areas as they could be potential yield hotspots.”
The average advertised rent for Great Britain rose by a marginal 0.01% in July to £967. When compared against rents of 12 months ago, an increase of just 0.32%, equivalent to £3, further reinforces the picture of advertised rental prices having reached equilibrium.
The period of recovery for advertised rents in London throughout April and May has been offset by a second successive month of decline with rents in July down by 0.41%, a reduction of just over £9 from the June average. As has been the case throughout 2013, London continues to be the only region in Britain where the average advertised rent is down against last year at 5.77% or £127.
East Anglia and the South East have continued the pattern of growth. Both regions have performed strongly in July with advertised rents increasing 0.81% and 0.79% respectively.