Rents in the UK rose 0.7% in October to £1,294, defying the seasonal dip that normally hits the rental market in the autumn, according to the monthly Landbay Rental Index.
The latest data suggests that the rise was due to the UK’s housing shortage, growing pay and low unemployment levels.
While rents rose month-on-month and year-on-year across the country, Scotland saw a marginal monthly fall of 0.1% to £696.
The autumn seasonal slowdown in the rental market is normally caused by lower tenant demand from students, first jobbers moving for work, and annual contracts that originated in previous summer rental rushes expiring.
October’s rent increases were fastest for three bed properties (up 4.7% year-on-year) and one beds (up 4.4% year-on-year).
Increases in the UK are being driven by London and the South East. In October, London rents increased 4.1% year-on-year to an average of £2,063, whilst rents in the South East rose by 3.4% over the year to £1,033.
Out of the top twenty areas of the UK outside of London to see the fastest rent increases, just Aberdeen, Edinburgh and Bath were outside of the South East.
John Goodall, co-founder and CEO of Landbay, said: “Seasonality has always been a strong feature of the UK’s rental market so the fact that it appears to be declining in influence is a powerful sign of the increasing strain the private rental sector is under to house the UK population. The simple fact is that more people are renting for longer and there aren’t enough properties to meet demand. Now that the economy is improving and wages are rising, people are willing to compete for rental properties, pushing up prices.
“In previous years, price-conscious tenants could take advantage of the seasonal dip in rents to find cheaper rents in the autumn or winter. Consistent rent rises throughout the year has taken away that option in large parts of the country.”
