The average asking price for rent peaked in November last year while demand remains strong in the sector, according to a new report.
As revealed in the Move with Us rental index for quarter four 2013, the average rental price in the UK hit the £986 per month mark during the penultimate month of the year, despite November being a time when rents usually fall.
While the picture isn’t the same all over the UK, with rents falling in London and the south-east by £12 and £24 respectively, improvements were seen in other regions.
For example, the north-east saw an average 9.16 per cent quarterly rise in rent, equating to £58 in real terms. Wales also saw a similar increase of 9.62 per cent (£59) while homes in Yorkshire and Humber witnessed a 6.38 per cent (£36) growth in monthly prices.
UK rental market
Robin King, director of Move with Us, noted that while rents across the UK are rising on average, there is still a significant lack of supply for prospective buyers on the market, turning more people towards rental accommodation.
“Landlords have responded to the change in the market by raising the standard of rental properties and lengthening contract terms to provide tenants with security and better living conditions so renting is a viable alternative to buying,” he said.
Despite the small decline in rental values in London and the south-east, the region still presents a lucrative market, due to the persistent demand for houses near the UK capital. It is also seasonally typical that rents in this area drop.
Buy-to-let landlords are increasingly seeing the value of investing in rental property outside of these areas though, with demand still high in the UK’s other regions and the value of property significantly cheaper.
With more businesses moving away from London to base their operations, improved employment figures in regional areas are also boosting the local housing demand.