Rents rise 3% over course of 2014
- Annual rent rises of 3.0% over twelve months to December defy slowdown in general rate of inflation
- Rents fall between November and December, down 0.1% month-on-month across England and Wales
- East of England, Yorkshire & Humber, East Midlands and London see no seasonal fall and new records
- Tenants feel the festive squeeze – with 8.9% of rent in arrears, the highest since previous December
- Landlord total returns drop to 11.1% over twelve months to December, on back of cooling property prices
Rents have risen by 3.0% over the course of 2014, despite falling on a monthly basis between November and December, according to the latest Buy-to-Let Index from Your Move and Reeds Rains.
The average residential rent across England and Wales now stands at £767. This compares to £745 in December 2013.
Strong annual growth comes despite falls on a monthly basis, with average rents 0.1% lower than seen in November 2014.
Adrian Gill, director of estate agents Reeds Rains and Your Move, comments: “There appears to be a new fire in the rental market as we enter 2015. Demand for homes to let is hotter than we would normally expect at this time of year.
“Recent months have shown a divergence from usual seasonal norms. Historically, there is a tendency for rents to ease in the winter, particularly December. With fewer tenants willing to relocate in the festive period, landlords usually compete to fill empty properties and agreed rents tend to dip as a result. Last month that happened – and rents fell compared to November – but by much less than the usual extent.
“In particular a jobs boom across the eastern regions of England has seen a larger than usual number of people relocating in the winter months. This has pushed up rental prices in these regions even further.”