New figures released from specialist letting agents' service provider Endsleigh today, show that despite the impact of the recession on the property sector, the lettings market has remained buoyant, with the majority of rental prices in the UK increasing steadily in the last 2 years.
The report, which looks at property rental prices since 2009, shows that the average cost in the UK has risen by 4%, well above the inflation rate in 2010, which fell to as low as 3.0%.
Prices for tenants have gone up in regions across the UK, however London is named the most expensive area, costing double (£1372) the average rental price (£688) per month. In the face of the recession, tenants in the Capital have experienced an 8% increase in their rental prices.
The results also show that living in London costs over a quarter more than it does in Middlesex, which is identified as the second highest priced region. Surrey is ranked third with the price of a property costing £973.
Scotland on the other hand comes out cheapest, with a tenant paying just £299 per month for a property, almost half (43%) of the national average.
It too has seen an increase in value- last year tenants in Selkirk paid double what they did the year before that. However a tenant will still be paying 4.5 times less than a renter in London.
Lincoln, Stirling and Stafford also came out as good areas for tenants, being named the second, third and fourth cheapest areas in the UK respectively.
Carlos Thompson, Endsleigh's Head of Business Development, said:
"The increase in cost of renting across the UK shows that despite the recession the lettings market has remained strong, which is great news for landlords and letting agents. Tenants on the other hand may be disconcerted by this news.
"They shouldn't be, our survey in April showed that two thirds of landlords won't be putting up their rents this year. I suspect the increase in rental prices in the last two years has brought rental prices in line with the market value, allowing costs to plateau this year.
"However, the very nature of rented accommodation means there can be unexpected surprises, with the possibility of tenants falling into difficulty, or leaving suddenly.
"But if landlords protect themselves from lost income through rent guarantee insurance and robust tenant referencing they will be secured against the unexpected, enabling stability in their portfolio of properties."
