Rental growth doubled in 2019 ‒ Hamptons

As a result, the average rent of a newly let home stands at £989 per month, up by £20 from the same time last year.

The strongest rental rises were seen in southern regions, with rents in the south west jumping by 4.2 per cent over the year. This was just ahead of the 4.1 per cent recorded in the south east, while the east of England enjoyed rental rises of 2.6 per cent.

At the other end of the scale, the north saw the weakest rental growth at just 0.2 per cent, while greater London saw rents rise by just 1.1 per cent.

Hamptons pointed to the declining number of purchases by landlords in recent years, which has meant a reduction in the number of homes available to rent, particularly in London and the south. 

It noted that there were 7.8 per cent fewer properties available to rent during the first 11 months of last year compared with the same period in 2018, while in the south the supply levels dropped by 11.7 per cent.

In addition, Hamptons suggested there were signs that property investors were beginning to return to the market. It highlighted that in the first 11 months of the year landlords accounted for 11 per cent of all purchases, but in November alone the proportion bought by investors rose to 12 per cent.

Aneisha Beveridge, head of research at Hamptons International, noted that rental growth was heading back to its long term average, with the south leading the way. 

She continued: “After four years of falls there are now signs that landlords are beginning to return to the market – particularly in London where house price falls and steady rental growth are gradually enticing investors back.”