London rents on the rise

The site’s rental index shows that the average advertised rent in the UK capital increased for the first time since October 2012 in April, reaching an average of £2,182 per month.

Average rents remained steady across Great Britain for the fourth month in a row.

“Increases in the London rental market are significant as it is a key determinant of the national average and has recently performed poorly,” notes Move with Us.

Average advertised rents in Great Britain currently stand at around £966 per month, following a 0.49% fall in April. This is a fourth month of relative stability in the rental market with rents changing by no more than 1% between December 2012 and April 2013. This stability is also reflected regionally with average advertised rents changing by less than 1% in all but two regions.

Both the North East and East Anglia also saw advertised rents increase. East Anglia continued on a steady path of price growth with an increase of 0.13%. The North East, on the other hand, appears to have recovered from a four month fall in rents with a 2.02% increase in the latter part of April. The total increase for the month in the region was 0.16%, as prices fell by 1.86% in the first two weeks.

Most regions saw average rental prices fall this month though the majority of these decreases were less than 1%. Wales saw the most significant decline with the average price falling by £22 in April to £638 per month. Average advertised rents also reported falls of 1.51% in the East Midlands reaching a low of £623 per month. In both regions these decreases continue a sustained trend of falling prices that started in December 2012.

Overall, it appears that average advertised rents in Great Britain will continue to fall, though a possible recovery in the London rental market could push average rents up in the coming months.

Robin King, Director of Move with Us, commented: “Overall, average advertised rents have not changed by a large amount this month. However, there are several regions such as Greater London and East Anglia that could potentially see continued upward changes in advertised rental prices by the end of the quarter. However, recent data has demonstrated that the residential sales market is improving and media reports show that mortgages are more readily available which is likely to be bolstered by the government’s new Help to Buy scheme. These factors mean it is likely we will see an adjustment in the rental market and a move away from renting as purchasing property becomes more accessible.”