National UK average rents reach above £1,000 for first time ever

The national average advertised rent in Britain has risen above £1,000 for the first time, and reaching £2,300 per month in London, according to the latest index.

Nationwide the average advertised rent reached £1,006 per month, the data from property firm Moves with Us shows, but it also points out that there are considerable variations depending on location.

Continued, sustained growth in both London and the South East has significantly contributed to the increase in the national average rent. Advertised rents in the capital have reached £2,300 per month, the highest average outside of the ‘Olympic bubble’ of the summer of 2012.

Having already increased £103 or 4.68%, in the last 12 months, the London rental market may peak over the next year, the firm points out.

Outside of the Southern rental market, Scotland is experiencing its own resurgence, with average advertised rents continually improving since November last year to a record £726 per month.

The rental market in Scotland has grown by more than £50 or 7.5% since May 2013 and the upward trend looks set to continue, having been one of the most stable regions of the last two years.

However, there has been less positive news in the Northern markets as average advertised rents in the North West, Yorkshire and Humber and the North East fell slightly in May. The North East generally regarded as a difficult market to predict, having experienced recurrent peaks and lows since 2012 has now hit a two year low with rents dipping to £639 per month.

‘For the first time, the average advertised rent in Britain has risen above the £1,000 mark. This is still a tale of two markets however, with the South of the country continuing its steady growth path while the North is following behind,' said Robin King, Director of Move with Us.

'This record milestone emphasises that in certain regions across the country there isn't enough supply to keep up with demand in the private rental market. The regions around the capital have witnessed substantial growth in the last 12 months and have made a significant contribution to the national average rent going past £1,000 for the first time,' he expalined.

'Although this is a good news for landlords, the higher cost of renting will be hitting the pockets of tenants across the country. One of the solutions to bringing down the cost of renting is to build more houses,' he added.