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The rental market remains stable over Q1 2015

The rental rate for the UK has remained stable for renewed and occupied tenancies, while new properties have seen an increase in the opening quarter of 2015.

UK Investment Property

The rental rate for the UK has remained stable for renewed and occupied tenancies, while new properties have seen an increase in the opening quarter of 2015.

According the Countrywide Rental Index, the average rental rate rose in Q1 for newly let properties, increasing 4.5% from £853 in the final quarter of 2014 to £894 per month.


The trends varied across the different property sizes, with one and two bedroom properties rising by 0.8% and 0.4% respectively over the first quarter, with rental rates reaching £730 and £817.


The increase was slower for three and four plus bedroom properties however, with rents staying stable at £939 and £1,435 respectively – a 0.1% increase for each property type.


This varies greatly in the month-on-month figures as rent for three and four bedroom properties increased by 16.4% in February, but only 1.6% in March 2015. Two bedroom properties remained steady with no change in the average monthly figures, while one bedroom properties fell by 1.4%.


Across Q1 2015, over half of the UK’s regions experienced a decrease in the average monthly rent, with the South East of England seeing the greatest fall of all the regions – a 1.9% decrease from the final quarter of 2014 to an average rental income of £1,097.


However, the South East was also home to the largest month-on-month increases within the quarter, seeing an increase of 14.8% from February to March.


London saw an increase of 3.1% over the course of the quarter, bringing the average rental price to £2,561. Yet the month-on-month figures demonstrate that between February and March, the capital saw the greatest decrease in rent levels of anywhere in the UK, falling 4.4%.


While there was a lot of movement in the South, rents remained unchanged in the North of England.


For renewed tenancies, the average UK rent in March was £848 per month, marking a 0.8% increase on the previous month and a 2.3% increase on the previous year.


The average monthly rent for renewed tenancies remained relatively unchanged across the various property sizes, with only one bedroom properties seeing a significant increase of 4.3% month-on-month to March 2015. Two beds saw a 0.6% rise in rental levels, three beds experienced a 0.6% fall and four plus bedroom properties remained unchanged.


Rental arrears have also continued to fall across England, Scotland and Wales, indicating that tenant income has become more available over the past twelve months.

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