After a lull period of three months, residential rents are climbing up in London, a global property hotspot. The average monthly rent in the capital now stands at £1,609.

Rents in London rose 2.5 per cent in August year-on-year, following three successive months of decline, according to the latest HomeLet Rental Index.

Average rents across the UK rose by 2.4 per cent in August compared to the same month a year ago, the highest rate of annual inflation since November 2016; the average monthly rent now stands at £939. When London is excluded, the average rent in the UK is £776; up 2.3 per cent year-on-year.

August’s increase in average rents was partly driven by a return to inflation in the London market, where rents agreed on new tenancies last month were 2.4 per cent higher than in August 2016. Last month’s increase took the average rent in the capital to £1,609 – the first-time rents in London have been above £1,600.

Outside London, rental price inflation has also picked, with 10 out of the 11 regions beyond the capital seeing higher rents increasing last month. The average rent on a new tenancy outside London was £776, up 2.3 per cent compared to the same period in 2016.