SEPTEMBER 13, 2016 | BY A & S Property
Rents cool across half of Britain as supply increases

There was a fall in the level of rents achieved on new lets across more than half of Great Britain last month as ‘power shifts to tenants’, according to the latest monthly letting index from Countrywide. 

Rents dropped year-on-year in five of the nine areas monitored in August, but for Great Britain on the whole, the average rent on new lets increased by 1.5% to £960 a month, supported by growth in Greater London, East of England, the North, and Scotland.

But while overall rents rose, the estate agency group reports that rents fell in central London, the South East, South West, Midlands, and Wales, reflecting a sharp rise in the supply of housing coming onto the private rented market.

“In London and the South East, recent increases in the number of homes available to rent, outpacing the growth in tenants looking for a home, has meant that bargaining power is shifting towards tenants from landlords. This is slowing rental growth,” said Johnny Morris, research director at Countrywide.

He added: “Overall slightly more tenants are offering above asking price than last year. The majority continue to pay asking prices. Unlike the sales market rental prices adapt very quickly to changes in market conditions, meaning asking prices are finely tuned to tenant demand.” 

Proportion of homes let above asking price

Region

Aug-15

Aug-16

change

Greater London

17%

13%

-3.7%

Central London

17%

8%

-8.9%

East of England

13%

15%

2.3%

South East

14%

14%

0.1%

South West

12%

15%

3.1%

Midlands

10%

11%

0.9%

North

10%

10%

-0.3%

Wales

11%

8%

-2.7%

GB

12%

12%

0.2%

Source: Countrywide

 

 

Rental Prices (per month) for New Lets

Region

Ave Rent Aug-16

Ave Rent Jul-16

Ave Rent Aug-15

August Rent YOY

Greater London

£1,299

£1,280

£1,288

0.9%

Central London

£2,434

£2,638

£2,484

-2.0%

East of England

£977

£963

£912

7.1%

South East

£1,188

£1,173

£1,205

-1.4%

South West

£862

£856

£853

-1.1%

Midlands

£705

£703

£708

-0.4%

North

£697

£694

£676

3.1%

Scotland

£726

£689

£696

4.3%

Wales

£669

£671

£672

-0.4%

GB

£960

£951

£946

1.5%

Source: Countrywide

 

Rental Prices (per month) for Occupied Units

Region

Ave Rent Aug-16

Ave Rent Jul-16

Ave Rent Aug-15

August Rent YOY

Greater London

£1,225

£1,222

£1,173

4.4%

Central London

£2,404

£2,419

£2,455

-2.1%

East of England

£881

£876

£837

5.3%

South East

£1,007

£1,004

£995

1.2%

South West

£751

£747

£730

2.9%

Midlands

£639

£638

£625

2.2%

North

£633

£631

£621

1.9%

Scotland

£643

£640

£635

1.3%

Wales

£653

£652

£650

0.5%

GB

£869

£867

£849

2.4%

Source: Countrywide


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