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Rental markets in the North and Wales surge ahead

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  • 16/01/2014
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Tenant demand for rental properties increased substantially in the North East, South Yorkshire and Wales as the supply of new stock struggles to keep pace, Countrywide's lettings index showed.

The figures highlighted that growing demand is shifting to areas which have enjoyed the strongest economic recovery in the last 12 months.

The strongest wage growth and largest increases in rents were recorded in the northern regions of England, Scotland and in Wales with rents closely reflecting this growth.

London is the exception where wage growth has been more subdued.

Nick Dunning, group commercial director at Countrywide, said: “2013 saw the focus of demand shift sharply northwards after several years of more stable levels of supply and demand.

“The largest increases in demand have been in those towns and cities where the most new jobs have been created as the recovery spreads outwards from London.”

Across Northern England average monthly rents rose 3% which Countrywide expects to continue in the first part of 2014. Rents in Wales grew by 3.8%, and 3.4% in Scotland.

Pressure on rental markets eased slightly across the South East as average monthly rents fell by 0.5%. While Greater London saw an increase of 3.4% of 2013 rents in Central London decreased 0.2% which was attributed to sharp increases in rent in 2012 because of the Olympic Games.

Across the UK rents grew 2% which closely reflected the growth in wages of 1.9%.

Dunning added: “The large increases in rents seen in the capital and the South East in 2012 were not mirrored in 2013. While rents in London continue to increase, the rate of increase has reduced substantially and is closer to the average increases seen across the rest of the country.

“In 2013 the North and Midlands regions have increasingly been playing catch up with London and the South East where rents increased at twice the rate of the rest of the UK in 2012.”

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