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Rents outside London surge to over £1,000 p/m
The average rent on a newly let home outside of London has risen to £1,002 per month in April, according to research by Hamptons.
This represents a 7.8% increase compared to the same time last year, with annual rental inflation particularly high in Scotland and the Midlands.
Since Covid, rents have risen by 31% across the South West, North West, and North East, surpassing the average increase in Inner London, which was 21%.
Demand for rental properties in suburban and rural areas increases
Rents outside of London have passed four £100 per month milestones since 2013, including three since the start of the pandemic.
Meanwhile, London currently has the strongest rental growth, with the average rent on a new let in Greater London hitting £2,210 pcm in April, 17.2% higher than the same month last year.
April also marked the first time that the average monthly rent in the capital surpassed £2,200 pcm, which will cost the average tenant an extra £3,895 a year if they were to move into a new rental home.
Is the market sill suffering the effects of the Pandemic?
The pandemic has had a significant impact on the rental market in the UK, with many people choosing to move out of urban areas in search of more space and lower rents.
As a result, many suburban and rural areas have seen a surge in demand for rental properties, driving up prices. The trend has been particularly pronounced in areas outside of London, where rents have been rising steadily since 2013.
The rise in rental prices outside of London is likely to continue in the coming months, driven by a combination of factors including rising demand, a shortage of rental properties, and the increasing cost of living.
However, affordability constraints are likely to hit the brakes on rental growth at some point this year, as tenants face the choice of staying put or moving to a smaller, more affordable home.
With the rental market still buoyant however, it is likely that many landlords will continue to see healthy returns on their investments in the coming months.