London rents increase by £500 a year

Tenants in the Capital are paying almost £500 a year more if they rented in August compared to July 2014, according to figures released by Move With Us.

The average advertised rent in Greater London increased by £41 (1.84%) per month in August, reaching £2,417 per month, making the annual accumulation of increased rent almost £500 per year more. Greater London continues to be the highest performing region in Britain, a trend which is not expected to change in the coming months.

Since average advertised rents in Great Britain exceeded £1,000 per month in June this year, they have continued to rise steadily. The average advertised rent for Great Britain climbed to £1,034 per month in August, which is an increase of £64 per month when compared to the same time last year, and a £5 per month rise within the last four weeks.

All regions in the North of England experienced a fall in average advertised rents in August with the North East, Yorkshire & Humber and the North West all recording the highest monthly decreases of 1.28%, 1.14%, and 1.13% respectively.

However, the rental market in Scotland has continued to see substantial increases. Average advertised rents reached £739 per month in August, a 9.12% or £61 increase on the previous year.

Average advertised rents continued to increase in the South East in August, reaching £1,251 per month, an increase of 8.26% (£92 per month) in a yearly comparison. However, rents in both East Anglia and the South West faced a slight decline this month of £2 (0.18%) per month and £3 (0.38%) per month. Despite decreasing in a monthly comparison, average advertised rents in both regions continued to increase yearly by £54 (6.17%) and £37 (4.79%) when compared to August 2013.

Robin King, director of Move with Us, said: “Average advertised rents in Greater London have continued to climb this month, increasing by £41 per month, and while this is good news for landlords, it is once again bad news for people looking to rent in the Capital. A shortage of rental properties coupled with the ever-growing population in London, means competition is fierce and the upward trend is showing no signs of changing.

“While Britain has seen a steady rise of its overall average advertised rental prices, the country continues to be divided with rent increases in the South balancing the declines in the North, with regions such as Wales, Yorkshire and Humber and the North East experiencing a fall in their monthly advertised rents.

“Surprisingly, East Anglia has seen a slight fall in advertised rents this month, bucking the upward trend it had been experiencing. However, the reduction is minor and as a key commuter route to the Capital, it is unlikely that this area will see a prolonged fall in average advertised rents.”