National residential rent growth outperforms London, latest data shows
Monthly rents have increased across the UK with the national year on year rise of 10% outperforming London which saw annual growth of 6% last month compared with a year ago, the latest index shows.
It is clear that the outer regions have regain momentum and this growth has rebalanced the market, according to the index report from Sequence which has 300 estate agent branches across the country including Barnard Marcus, William H Brown and Fox & Sons.
However on a monthly basis rents at a national level and in London fell by 1% which is expected at this time of the year. But new tenancies across the UK increased 13%, outstripping London where they fell by 2%. The average monthly rent nationwide in November was £777 a month while in London it was £1,463 a month.
Also, the data shows that new tenant applications across the UK have increased by 6% annually while in London applications have remained flat. Buy to let mortgage applications continue to soar, up 41% annually.
‘The UK is outperforming London, with the average annual growth exceeding that of the capital across nearly all areas including rents, new tenancies and new tenant applicants. This draws the conclusion that it is the regions, not the capital, propelling the continued buoyancy of the rental market,’ said Stephen Nation, head of lettings for Sequence.
‘The monthly changes are more subdued, as you would expect at this time of year, but when compared to the same period last year it is clear to see that far from being stifled by a growing sales market, the national rental market operates independently, drawing on a different pool of supply and demand,’ he explained.
‘London’s performance has been the anomaly this month. While rents have increased by 6% annually, the number of new tenancies has fallen by 2% annually and crucially, new tenant applications have remained flat,’ he pointed out.
‘London’s market is unique in the sense that it has more variables, with a larger corporate let and short and long term tourist let sectors, which could explain a flattening at this time of year. London buyers have also witnessed the highest sales price increases and highest levels of buyer registrations, which could also account for the subdued figures,’ he added.