Cost of renting drops in UK regions

It is becoming cheaper to rent property across the UK, according to new findings.

Eight regions across the country saw a drop in the average rental value, indicating a modest cooling in the market.

In the south-east of England, prices fell month on month by 0.1 per cent to an average of £908, although they are up 7.2 per cent year on year.

The north of England also experienced drops in rental prices, with rental values down by 2.1 per cent in the north-east, to £505 and down 0.6 per cent year on year.

Similarly, the north-west saw rental prices fall 1.2 per cent month on month to £660 and rates are down 1.7 per cent year on year. While in Yorkshire and Humber they fell by 0.2 per cent to £607 but are up two per cent year on year.

Commenting on the findings, Martin Totty, chief executive officer of the Barbon Insurance Group, said that these trends look set to continue.

He added: "There can be an element of seasonality to the rental market with September often recording marginally lower average prices than other months, perhaps due to the number of student letting agreements being signed at this time of year.

"However, with this month’s data being the second consecutive month of slower rental price growth, and house prices indices indicating a slowing of house price growth, which could suggest movement to a period of more settled rental prices, even in previously booming markets such as London and the south-east."

The statistics by Homelet also showed that in East Anglia average rents fell 1.4 per cent month on month to £826, while in the East Midlands they fell 1.2 per cent month on month to £585 and are 1.2 per cent down year on year.

Published 21st October, 2014

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