Rents set to rise again through 2014

Landlords look set for continuing financial growth through 2014. The prediction comes as research reveals that average advertised rents in Britain started the year with a small but not insignificant rise of 0.77%.

The Move with Us Rental Index showed rents in Scotland rising quicker than anywhere else.

Scotland recorded an average increase of £16 (3.57%) in January. The average rent in the region now stands at £676 per month.

Meanwhile the overall average advertised rent is now £987 per month and is on track to surpass the £1000 mark this year.

Move with Us director Robin King said: Landlords in Scotland have seen a strong start to the year benefiting from good rental yields in places such as Aberdeen due to the high wages and short employment contracts of the oil and gas industry.

"London continues to operate in its own bubble and asking rents are on the rise again following declines.

"It is likely that the current increase in average asking rents is a sign of further increases to come as the population growth in Greater London carries on. Figures from the Office for National Statistics put the population of the capital in excess of 8.17 million people, over one million people more than 10 years ago. With the number of new homes being built not keeping pace with the rising population, competition for rental properties is becoming fiercer, pushing rental prices up.

"It is likely regions such as the South East and East Anglia have also been impacted by the population growth, benefiting from a ripple effect as higher commuter numbers move to the more affordable areas surrounding Greater London. This continues to contribute to the rise in rents reported in these regions, a trend which shows no sign of stopping in 2014.

"Although increasing rental prices in most regions in Britain is great news for landlords, it's not such good news for prospective tenants. Anyone looking to rent will be able to secure a more affordable rental price by acting sooner rather than later as rental prices look set to rise in the coming months."