The UK residential rental market remained steady in July, registering a marginal increase in the average rental price, according to the latest HomeLet Rental Index.
Average rent in the UK last month was £965 per month, an increase of 0.6 per cent over the same month last year. The coronavirus pandemic impacted the UK property market significantly, especially on the growth of the house prices. However, the rental market showed resilience with the demand gaining momentum.
In the UK capital, average rents are now at £1,611 per month, which is 99 per cent higher than the rest of the UK. When London is excluded, the average rent in the UK is now £808, this is up by 1.4 per cent on last year. All of the 12 regions monitored showed an increase in rental values between June 2020 and July 2020, with Northern Ireland seeing the biggest increase of 2.3 per cent.
Among the regions, the highest annual variance in rents was in North West at 6.5 per cent with average monthly rent being £758. In Yorkshire, rents went up by 4.5 per cent; South West by 2.5 per cent and Scotland by 1.9 per cent annually.
HomeLet's tenant reference data – which is also forward-looking – is one of the few sources with access to large data sets underpinning robust regional trend data. “It’ll be interesting to see what trends emerge, especially on the regional level and how these variations will affect both landlords and tenants across the country over the coming months,” HomeLet said in its report.
Martin Totty, chief executive at HomeLet, said: "July appeared to be yet another encouraging month for lettings – with a rise in rental prices across all of the twelve regions monitored compared to June. Demand for new tenancies is still strong,."