Average rents up 8.3% on a year ago but prices have dipped recently

HomeLet data shows that on average, rental prices are 8.3 per cent higher across the UK  at £874 per month, compared to a figure of £807 a year ago.

Nine out of 12 UK regions have recorded higher rental prices in November 2014 compared to the same month last year, even accounting for a 0.6 per cent decrease in UK average rental prices since October this year.

Regions that have experienced the highest growth compared to this time last year include Scotland, Greater London, and the West Midlands, with rental prices 11.7 per cent, 11 per cent and 8.7 per cent higher than this time last year, respectively.

Despite the strong annual comparison figures, the HomeLet Rental Index has recorded an ‘autumn dip’ in rental prices, with rents agreed on new tenancies falling in the majority of UK regions in September and October this year.

That trend continued in November with all regions of the UK with the exception of Scotland, the East Midlands and the South West recording lower prices than in October 2014. Scotland recorded a monthly increase in rental prices of 8.7 per cent, with the East Midlands and the South West recording monthly increases of 1.5 per cent and 1.4 per cent respectively.

The recent dip in prices reflects typical seasonal movement in the rental market and sits within the context of a market that remains strong. Annually, only three regions of the UK recorded lower rental prices in November 2014 compared to the same month last year: the North West dropped -3.6 per cent; the North East -2.5 per cent and Wales -2 per cent.