Asking rents have been rising faster than earnings growth for over two years now. This has been driven by increased rental demand in recent years, caused by such factors as a stagnating supply of rental property and increased mortgage rates, as discussed earlier. Where just 3 years ago, no regional markets outside the south had average rents above £1,000 pcm, now a certain percentage of properties further afield have reached and surpassed that figure. More than half of private rented homes now have average rents exceeding £1,000 pcm.
Taking a closer look at some of the regions, Scotland has the highest annual change in rents with 11.6%, with an average rent of £793, while London sees slower growth with 5.1%, but reaching a whopping average of £2,121.* The North East and North West also have significant growth with 9.9% and 9.8% annual change in rents, respectively.* In Wales, average rents are £881, a 9.5% average annual change in rents, and East of England isn't far behind with an annual growth of 9.3% (and an average monthly rent of £1,163).*