Asking prices for rents climb by just 1.1% in year to March

Asking prices for rents climb by just 1.1% in year to March [Photo: iStock/G0d4ather]

The rental market in the UK is performing well at present, with both landlords and tenants having reasons to smile, according to the latest market report from HomeLet. 

It said that over the course of the last year, landlords have been able to see their investments climbing in value as a result of growing rental prices. However, at the same time, tenants have been enjoying the fact that rents have not been increasing as fast as they have in recent years. 

The HomeLet index shows that the average national rental price in the private sector now stands at some £906 per calendar month. This means that the average asking price for new tenancies over the course of the last year has climbed by just 1.1 per cent. 

While this is still positive growth for the market in terms of investors' income, it represents a far slower rate of growth than landlords have been welcoming over the past few years, perhaps showing a maturing market is now in place nationwide. 

It was also shown in the report that average rental rates differ greatly across the UK, as do the pace at which they are climbing. 

HomeLet said that in Wales, the average rental cost is now £616 per calendar month, compared to the £906 national average and the £614 and £610 recorded in Scotland and Northern Ireland respectively. London still leads the way in terms of national rent, with the price per month in the capital now climbing as high as £1,546. 

Surprisingly, it's Wales that has seen the fastest growth in the past year. In the 12 months to March, Welsh rental prices climbed by 3.1 per cent, followed by Scotland with 2.1 per cent. In England, London saw rental rates climb by just 1.2 per cent, while the East Midlands welcomed growth of 1.1 per cent, and prices in the south-west were up just 0.9 per cent