The inherent strength and popularity of the rental market across the UK has meant the price tenants pay to live in privately let accommodation has risen nationwide, according to the latest quarterly data released by HomeLet.
In its report on the first quarter of 2016, HomeLet said that Greater London, the East Midlands and Scotland were the fastest rising areas in terms of rental prices, with the north-west in contrast being the only region that saw rental prices fall in the first quarter.
Data shows that, excluding London, the average price for rental property in the UK now sits at some £755 per calendar month. This means that in the last year, the average tenant has seen their costs climb by 4.9 per cent.
The report also said that the average rental price paid in London has now climbed to some £1,536 per calendar month, representing a rise of some 7.7 per cent when compared to the same quarter in early 2015.
"We’ve continued to see increases in rents on new tenancies in almost every part of the UK during the first quarter, as the private rental market has responded to the pressures of an imbalance between demand and supply," said Martin Totty, Barbon Insurance Group’s chief executive officer.
Mr Totty said he believes that in the next few months, we could see rental prices sit reasonably static because of the fact there has been a rise in the number of homes being purchased and brought to market by landlords. This has eased the pressure on supply and helped redress the balance in the sector. However, while price rises will be slower in the immediate future, this may change down the line.
"In the longer term, changes to rules around buy-to-let mortgage interest being offset against tax bills, coupled with the Bank of England’s instruction to lenders to apply more exacting criteria on buy-to-let lending, may have a limiting effect on supply," he added.