National rents have risen 10% annually, while London rents are up 6%, as the outer regions regain momentum and rebalance the market
Despite this, both national and London rents have fallen 1% on the month, which was expected as part of a seasonal trend.
New tenancies across the UK have risen 13%, outstripping London which is down 2%, and new tenant applications across the UK have risen 6% annually, while London applications remain flat.
Proving the market is going from strength to strength, Buy-to-Let mortgage applications also continue to soar, up 41% annually.
Stephen Nation, Head of Lettings for Sequence, said:
“The UK is outperforming London, with the average annual growth exceeding that of the Capital across nearly all areas - in rents (+10%), new tenancies (+13%) and new tenant applicants (+6%). This draws the conclusion that it is the regions, not the Capital, propelling the continued buoyancy of the rental market.
“The monthly changes are more subdued, as you would expect at this time of year, but when compared to the same period last year it is clear to see that far from being stifled by a growing sales market, the national rental market operates independently, drawing on a different pool of supply and demand.
“London’s performance has been the anomaly this month. While rents have increased by 6% annually, the number of new tenancies has fallen by 2% annually and crucially, new tenant applications have remained flat. London’s market is unique in the sense that it has more variables, with a larger corporate let and short and long term tourist let sectors, which could explain a flattening at this time of year. London buyers have also witnessed the highest sales price increases and highest levels of buyer registrations, which could also account for the subdued figures.”
