The average cost of renting a home in the UK fell 4.6% to £815 per month in October 2013 according to data from the HomeLet Rental Index.
Every region, apart from the North East and Northern Ireland, saw a decrease in monthly rents during October, however UK rental amounts are still an average of 2.7% higher than in October 2012. This increase has been driven by the East Midlands, Greater London and the North West, where average rents rose by 3.2%, 2.6% and 2.1% respectively.
Gary Abraham, HomeLet’s Sales and Marketing Director, said: “Although this dip could be the result of an annual trend - when an influx of students move into higher yield properties and drive up average rental amounts - it could be due to a number of other factors.
“Historic data shows that from October 2010-2013, average UK rents increased less each year, after rising by 5% in 2011, 3.3% in 2012 and 2.7% in 2013. This is also true in the capital, where the rate of increase in average rents slowed down by 2.3% between October 2011-12 and 4% between October 2012-13.
“Our new figures could suggest the effect of the economic downturn in 2008/09 is beginning to reduce. Government investment also appears to be helping to alleviate the recent so-called ‘housing crisis’. There’s certainly more confidence within the housing market at the moment and an increasing amount of first-time-buyers are now purchasing their own properties as a result of increased lending and mortgage availability.”
The North East region saw the largest increase with the average cost of renting a home in the region rising by 1.4% during October 2013 to £515 per month.
Except for Greater London, the North West is the only region to see three consecutive annual increases in average rental amounts, although average rents in the North West are only 4.5% more expensive than they were in October 2010. However rents in Greater London are currently 20.6% higher than they were three years.
The UK annual increase (of 2.7%) has been driven by the East Midlands, Greater London and the North West, where average rents rose by 3.2%, 2.6% and 2.1% respectively
Abraham said: “The influx of people renting a home over the past few years caused the high demand, lack of supply and resulting increases in rental amounts. However, with more options available to potential buyers and tenants, it appears rental prices are beginning to stabilise. Momentum must be maintained though so those living within the private rented sector are offered the best quality properties and security needed as part of their tenancy agreements.”
