Average rent in Britain hits £1,000 milestone

The national average advertised rent has risen above £1,000 for the first time, reaching £1,006 per month.

The Move With Us rental index shows continued, sustained growth in both London and the South East has significantly contributed to the increase in the national average rent.

It says that advertised rents in the capital have reached £2,300 per month, the highest average outside of the ‘Olympic bubble’ of the summer of 2012. Having already increased £103 (4.68%) in the past 12 months, the London rental market may peak over the next year.

Outside of the Southern rental market, Scotland is experiencing its own resurgence, with average advertised rents continually improving since November last year to a record £726 per month. The rental market in Scotland has grown by more than £50 (7.50%) since May 2013 and the upward trend looks set to continue, having been one of the most stable regions of the last two years.

However, there has been less positive news in the Northern markets as average advertised rents in the North West, Yorkshire & Humber and the North East fell slightly in May. The North East generally regarded as a difficult market to predict, having experienced recurrent peaks and lows since 2012 has now hit a two year low with rents dipping to £639 per month.

Robin King, director of Move with Us, said: “For the first time, the average advertised rent in Britain has risen above the £1,000 mark. This is still a tale of two markets however, with the South of the country continuing its steady growth path while the North is following behind.

“This record milestone emphasises that in certain regions across the country there isn't enough supply to keep up with demand in the private rental market. The regions around the capital have witnessed substantial growth in the last 12 months and have made a significant contribution to the national average rent going past £1,000 for the first time. Although this is a good news for landlords, the higher cost of renting will be hitting the pockets of tenants across the country. One of the solutions to bringing down the cost of renting is to build more houses.”