Following a period of rent price rises in the capital in 2014 that outstripped the rest of the UK, findings from the Homelet Rental Index showed that price growth nationwide is beginning to catch up.
In the three months to February 2015, rents surged in seven of 12 regions across the UK, with London rent prices remaining static.
The average UK rent now stands at £899 per month, compared to £889 at the end of January 2015, and £873 in December 2014. The North East and South West witnessed the largest jump in rent price growth in 2015 to date, increasing by 6.2% and 4.5% respectively.
In contrast, rent price growth in Greater London dropped by 2.5% in 2015 to February 2015, with the average rent standing at £1,390.
In February alone, prices for new tenancies increased in several areas on the previous month, with Northern Ireland rising 7.2%, the North East of England increasing 6.2%, the South West of England by 4.5% and East Anglia by 3.7%.
Martin Totty, CEO, Barbon Insurance Group, parent company of HomeLet, said: “The rent price growth seen in London during much of 2014 now appears to be slowing. However a recent survey we conducted with London letting agents has shown that demand for private rental property remains high and still outstrips supply, with 80% of agents saying there are more tenants than properties available.”
