Dynamics of prices for rental property in the UK

Rental prices of residential property in England increased by 8.4% over the 8 years between may 2005 and may 2013, based on the latest data published by the Office for National Statistics.

During this period, prices for rental residential property in the UK the biggest growth was, of course, in London, a rise of 11% in the East of England , prices rose by 8.3%. In the North-East and middle East rose by 5.2% and 5.3%, respectively.

Over the past 12 months the average price of rental housing has increased in eight of the nine regions of England. Most, by 2.2%, the price rose in London, in the South-East, the price rose by 1.2% in the North –East the price of rental properties fell by 0.1%. The average UK rental price of residential property rose by 1.3%. This means that if in may 2012 it was possible to rent an apartment for £500, in may 2013, a similar flat was worth £506 .

It is clear that a very large proportion of this increase has occurred in London.

If you compare the growth in rental prices of residential property in the UK by regions – England, Scotland and Wales, the largest increase for two years from may 2011 to may 2013 was observed in England at 2.8%. In Scotland, the average rent of residential properties increased by 2.2% and in Wales by 2.3%.

Interesting dynamics of the prices recorded in may in Wales. In may 2013, for the second time since January 2012 growth in rental prices of residential property in Wales was higher than in England.

The index of prices the office for National Statistics originates in England since 2005. The period since 2005 can be divided into 3 independent period. Prices have steadily increased from January 2006 until November 2009, then December 2009 to November 2010, rental prices fell from December 2010 when the situation in economy began to show signs of recovery, prices began to rise again. During all this time the strongest growth in rental prices was recorded in 2008.

If the statistics for England to eliminate London, then prices will show a similar trend, but the growth rate will be slower.

® Helen Entree. 06.07.2013