Thanks to wages now rising above inflation, for the first time in years, rents are on the increase. However, rental averages and trends do vary throughout the different regions, so whether you are looking to rent a property, or invest in a buy to let, do ensure you carry out your homework on the area you are interested in prior to making your decision.
We look at the rental indices from Belvoir, LSL, Countrywide, Homelet and Move with Us, however, it’s unlikely that any indices can be directly compared. What we can do is check whether they are all giving the same trending information – ie going up or down, so we can get a feel for what’s actually happening in the market from a variety of sources.
The breakdown for Scotland and Wales regions show:-
For Wales, the Homelet and Countrywide indices show year on year falls of -3.7% and -2.7% respectively, with LSL and Belvoir indicating rises of 2.2% and 3.8%, and the Move with Us figures show a larger increase of 8.5%, year on year. Rents in Wales, on the whole, appear to be rising.
In Scotland, the Countrywide indices is showing an insignificant fall of -0.2%, year on year, with Homelet and Move with Us showing rental increases of 9% and 10.9% respectively. According to the Scottish Buy to Let Index from LSL, “The pace of annual rent growth in Scotland has dropped by two-thirds over the course of 2014. Average monthly rents in Scotland are now just 1.2% (£6) higher than a year ago, with growth slowing significantly over the past twelve months from a 3.9% (£20) annual jump in rent prices seen in 2013. This follows a monthly drop in average residential rents, down 0.4% in December to £536 per month.”
We work closely with SpareRoom who run their own Index to help buy to let landlords and tenants understand the trends in renting a room and they support our Rent a Room Checklist.
National room rent trends from SpareRoom show “December’s average room rent was £561, up from £557 in November.”
Regional Room Rent Trends
UK room rents rose by an average of 8% in 2014. Some areas saw above average rents rises; Gravesend (10%) and Livingston (12%) for example, whilst rents rose at levels below average in Waterlooville (6%) and Aldershot (5%). Rents remained steady in Kingston upon Thames and Staines.
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