Move with Us says rents across Britain increased by £66 a month over the past year to reach an average of £1,034 with several regions showing exceptional rises.
For example, rents in the south east and East Anglia reached their highest recorded levels during the third quarter of the year, at £1,254 and £947 per month on average, an increase of £18 and £11 respectively. Scotland also continued to be a strong performing region, with average rents hitting record levels of £727 per month.
As with the second quarter, the average national rent has been significantly influenced by a booming London market.
The average advertised rent in the capital has risen by a staggering £118 in the past three months to reach £2,452 per month. This figure is £230 higher than it was during the same period in 2013.
In the remaining northern regions however, rents have fallen gradually across the board with Yorkshire and Humber seeing price reductions of over £20 per month in Q3.
Here's a full regional breakdown from Move with Us:
Greater London: The average advertised rent in the capital has grown significantly over the past 18 months. In Q3 2014 alone, it increased £118 per month (5.37%), one of the largest increases on record. It is now, on average, approximately £230 per month more expensive to rent a property in London than it was a year ago. The average rental price in the Capital is more expensive than in the summer high of 2012 when the London Olympics artificially inflated asking rents. Rents are continuing on an upward trajectory which is likely to continue into 2015. The quarter ended with the average advertised rent at £2,452 per month.
South West: Average rents in the South West have grown steadily throughout 2014, however, rents have fluctuated week to week while never falling below an average of £800 per month. In Q3 2014, the market improved marginally in July before dipping £3 (0.4%) in August and September. The average advertised rent is £33 (4.28%) up in a yearly comparison at £813 per month. While the average rent seems set to continue to grow over the next year, it's likely that minor fluctuations will persist.
South East: The South East is the strongest performing region outside of the Capital. Average advertised rents in the region have grown steadily over the past two years. In the last year, rents have risen by a staggering £112 per month, equivalent to a 10.11% increase since 2012. The £18 increase in monthly advertised rents over Q3 2014 is the biggest regional growth outside of London for the period, and reflects the continued improvement to an already strong market. The average price to rent in the South East now stands at £1,254 per month and looks set to continue to grow, albeit at a slower pace.
East Anglia: After rising steadily throughout Q2 2014, the average advertised rent in East Anglia reached a record high of £948 per month and stayed around this level for the rest of Q3 2014. Advertised rents are holding fast after a period of successive rises, demonstrating the strength of the market in East Anglia, one of the best performing regions in Britain.
East Midlands: Average advertised rents were at their highest at the end of 2013, through to the first two months of 2014. Since then the market experienced a period of gradual decline but more recently it seems to have bucked this downward trend. Despite rents only increasing by £7 (1.18%) in Q3 2014, they are £26 higher in a yearly comparison. At the end of September they were £642 per month.
West Midlands: Following a period of sustained growth in the first half of 2014, average rents in the West Midlands have begun to decline having fallen by £11 per month (1.70%) in Q3 2014. This sort of adjustment is expected after a period of growth as the market adjusts to find its equilibrium. As Q3 came to a close, the advertised rent in the area was £681 per month. Average rents in the West Midlands have increased by £26 (4%) in a yearly comparison. This demonstrates that despite the quarterly decline in advertised asking rents, the market in this region is ultimately growing.
Yorkshire & Humber: The rental market in Yorkshire and Humber declined in the second half of 2014. Advertised rents rose to £640 per month in Q1 2014 but have since fallen below £600 per month to settle at an average of £593 per month, £21 (3.76%) down when compared to Q2 2014. The current asking rent in Yorkshire and Humber is only £4 higher in a yearly comparison, indicating that we may well see rents settle back into their natural price range of £560 to £580 per month, where the market was in 2012.
North West: The North West is in a period of decline, having shown signs of recovery during July before trailing off by £15 per month in August and September. The average advertised rent now stands at £610 per month. Advertised rents are approximately £8 down in Q3 2014 in a yearly comparison but, more significantly, have dropped around £30 per month from the beginning of the year. The market may return to 2012 levels when the average advertised rent in the region was just below £600 per month.
North East: The quarterly dip in advertised rents of just £3 per month (0.46%) is marginal and should be viewed as part of an ongoing trend of fluctuation. Likewise, rents in Q3 2014 are slightly down on those of 2013 having dropped by £4 per month. Price fluctuations seem set to remain within the accepted limits, a sign of a balanced marketplace. A stable market average of between £640 and £660 per month seems to be the market's natural position.
Scotland: Average advertised rents in Scotland have grown significantly throughout 2014, so much so that rents peaked at a record high of £739 per month at the beginning of September before dropping slightly to a quarterly average of £727 per month. While average rents have fallen from Q2 2014 by £7 (1.08%), the market has grown by £67 in a yearly comparison and it is now on average £100 more expensive to rent a property in Scotland than it was at the end of 2013.
Wales: The average rent in Q3 2014 is £658 per month, having dropped marginally by £2 (0.39%) over the last three months. Such minor changes to the average advertised rent have characterised 2014 for Wales and this stability looks set to continue to the New Year. The average advertised rent has stabilised throughout 2014 and the market has found its equilibrium around the £660 per month mark.
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