The seemingly-endless arguments over widely differing house price indices have now entered the lettings sector with new HomeLets data showing a markedly different result to that produced yesterday by Move with Us.
The HomeLet Rental Index describes itself as the largest monthly survey of private tenants in the UK. Its latest survey shows the average UK private rent rose by 8.3 per cent over the year to July, taking the UK average to £900 a month, compared to £825 a year ago.
While in previous months the Greater London market has shown itself as a clear front runner in rent rises, HomeLet's July data points to fast rising markets in other parts of the UK. Scotland has seen the biggest increase in rents across the whole of the UK with rents rising 10 per cent from an average of £578 in June to £636 in July.
Rent prices in Scotland over previous months have indicated a falling market, with annual figures showing prices falling 0.5 per cent in May and 3.8 per cent in June, so the 10 per cent rise in July represents a sudden change in the state of the market.
Other regions in the UK showing strong growth this month include Wales, East Anglia and the South West. Year on year, East Anglia and the South West have consistently shown the highest rent price rises in the UK, at 9.4 and 8.1 per cent respectively, alongside Greater London at 9.4 per cent.
However, contrast that with the Move with Us figures reported by LAT yesterday.
Move with Us claims its data comes from a weekly snapshot of over 150,000 rental properties advertised on major portals across eleven regions in Britain.
It says the average advertised rent in Britain increased by £62 or 6.56 per cent in the year to the end of July and now stands at £1,029 per month. National rents passed the £1,000 per month mark in June and since then have continued to climb steadily, rising an average of £11 per month.
Unlike HomeLet, Move with Us places Greater London's movement very much at the forefront of the national rise. At an apparent £2,376 per month, renting a property in the capital is now £43 more expensive that it was at the beginning of July and £223 or 10.11 per cent dearer than a year ago.
And London's average rent is perhaps the most vivid example of how the two indices vary. HomeLet puts the average London rent in July at £1,429 while Move with Us claims it to be £2,376.
If Move with Us or HomeLet wish to explain how their figures differ so dramatically, please get in touch with us at LAT.
Comments
Quammi, I think that 930 is the average cost of renting in London. In UK, it is 900.
I guess that it is somewhere in between. The average rent is around 930 pounds. Way too high though...
The homelet data for Scotland seems quite far off the mark. The average rent in Scotland as at end of q2 2014 was 723
www.citylets.co.uk/reports
National rents don't tend to jump from negative growth to plus 10% in just one month. I would ask what volumes are being analysed and whether there is a full Scottish national spread. Are the figures mix adjusted Is there any real point tracking monthly changes in a seasonal market Surely year on year comparisons more meaningful if seeking to inform on changes in the fundamentals.