Rent Prices Grow Across the UK

By Simon Morris On Monday, March 30 th, 2015 · no Comments · In , ,

New data shows that rent prices have grown across the UK, with one notable exception. Property expert Simon Morris explores what this means for UK property investment companies looking to take advantage of the lucrative rental market.

Average rent rises to almost £900

As a property specialist, Simon Morris has seen how profitable residential property can be as an investment option. By renting it out, a residential home can provide an investor with a long-term revenue stream that they can depend on to generate reliable capital.

Recent statistics from the HomeLet rental index indicate that rental values are growing. The average UK rental price per month has risen from £873 at the climax of 2014 to £889 in the closing days of January 2015 to £899 at the end of February 2015.

Rent prices rise across UK, with one notable exception

However growth was disproportionate. Average rental prices rose in seven out of 12 regions in the UK. Prices increased 3.5% in the North West of England and 2.5% in the South West of the country, but they’ve held still in London.

Further evidence shows that London is beginning to lag behind other regions in the UK in terms of rental price growth. Looking specifically at new tenancies started in the month of February, prices rose from January 2015 in a number of regions in the UK. In Northern Ireland they ticked up an astonishing 7.2% and in the North East of England they rose by an impressive margin of 6.2%. However prices dropped by 2.5% in the UK capital.

“Private rental market becoming much more broad based.”

This is a serious reversal of the trend that typified the rental element of the UK residential property market in 2014. Martin Totty, chief executive of the parent company of HomeLet, Barbon Insurance Group, commented on what this means for the rental sector going forward.

Totty said: “Last year saw the London rental market outstrip the rest of the UK in terms of rent price growth but what we are seeing so far in 2015 is the private rental market becoming much more broad based with the strongest rent price growth occurring outside of the capital. Other regions of the UK such as the South West of England and East Anglia are maintaining the rises achieved in 2014 and continuing to grow.”

Seek expert advice

This suggests that those looking to invest in rental property may want to consider where they put their capital. London isn’t necessarily the most profitable rental market in the UK. However you choose to invest, make sure that as Simon Morris recently advised in his free guide to property investing in 2015, you seek expert advice to ensure you make the right decision before you choose to enter the UK property market.

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