The latest HomeLet Rental Index shows steady growth in UK rents last year, up by an average of 2.5 per cent year-to-date, with the average UK rent now at £932 per calendar month.
Despite the uncertainty surrounding Brexit and the tax squeeze on private landlords, rental values are expected to hold-up again in 2019, underpinned by an expected reduction in supply due to disposals.
London is showing a healthy 3.7 per cent increase over 2018 with rents across the capital now averaging £1588 per calendar month, and in prime central these figures were 9.7 per cent and £2356 respectively. Outside of the capital, £775 is the average rent recorded, which has increased by 2 per cent over the same period.
The Key Points:
- Average rents across the UK rose by 2.5% in January 2019 when compared to the same month a year previously; the average monthly rent is now £932
- Rents in London increased by 3.7% in January 2019 than in the same month of 2018; the average rent in the capital now stands at £1,588 a month.
- When London is excluded, the average UK rental value was £775 in January 2019, this is up 2.0% on last year.
- HomeLet’s January Rental Index reveals that rents rose in 11 out of the 12 regions covered in the research.
- In January, average rental values in London (£1,588) were 70.4% higher than the UK (£932)
- When London is excluded the average rent in the UK was £775 in January, average rents in London (£1,588) were 104.9% higher than the rest of the UK.
Martin Totty, chief executive at HomeLet, commenting on the latest index data said:
“Positively for both tenants and landlords, this year we’ve seen stability in UK rental price growth, with increases remaining broadly in line with the rate of consumer inflation. For landlords there remains a sustained demand for property, with the private rental sector continuing to provide the market with both flexible and long term housing options.
“The slowdown in the rate of house price growth, as reported by the Nationwide House Price Index is being driven by the depressed London market, which saw house prices decline by 0.8% during the last four months of 2018.
“In contrast, we have seen average rental values in the capital rise by over 4% in the latter stages of the year. Ultimately, we would expect this theme to continue in London, if the demand for property outweighs supply.”
On the outlook for 2019 Mr Totty says:
“Private residential landlords will continue to play a key role in the wider UK housing market. Whilst the outlook for property investors remains positive, one of the key concerns for the market in 2019 would be a potential lack of supply in certain regions.
See the full HomeLet Rental Index here