The £1000 Average Rent is Coming Soon UK

The average rent is on course to top £1,000 a month this year.

Advertised rents across Briton rose 0.77% in January and 1.63% over the year, according to new research from Move With Us, published today.

The average rent is now £987 a month, up £7 in January, which puts it on course to pass £1,000 in 2014.

Scotland was the strongest performing region in January, with the average rent rising 3.57% to £676 a month, a rise of £16 over the month.

Average advertised rents in Greater London rose 0.61% to £2,221 a month in January, a rise of 0.61%. This strong performance significantly contributed to the overall national increase.

Asking rents in the capital are almost double those in the second highest performing region, the South East, with an average asking rent of £1,138 per month.

Rents in the South East rose 2.17%, the equivalent of £24 over the month.

East Anglia also performed well, with rent rising 3.45%, or £30 over the month.

Average rents in Wales and the North East fell by £6 and £11 respectively, following a sharp increase in these regions in the final quarter of 2013.

Average advertised rents are now £679 a month in Wales and £695 in the North East.

Robin King, director of Move with Us, said: “Landlords in Scotland have seen a strong start to the year benefiting from good rental yields in places such as Aberdeen due to the high wages and short employment contracts of the oil and gas industry.

“London continues to operate in its own bubble and asking rents are on the rise again following declines.

“It is likely that the current increase in average asking rents is a sign of further increases to come as the population growth in Greater London carries on.”

London’s population now tops 8.17 million, one million more than 10 years ago. “With the number of new homes being built not keeping pace with the rising population, competition for rental properties is becoming fiercer, pushing rental prices up.”

The South East and East Anglia have benefited from a ripple effect as higher commuter numbers move to the more affordable areas surrounding Greater London, pushing up rents, he said. This continues to contribute to the rise in rents reported in these regions, a trend which shows no sign of stopping in 2014.”

Good news for landlords may be bad news for prospective tenants, King said. “Anyone looking to rent will be able to secure a more affordable rental price by acting sooner rather than later as rental prices look set to rise in the coming months.”