Rapid monthly growth pushes average rent to record high

Average monthly rents in England and Wales hit a record high of £804 last month, according to Your Move and Reeds Rains.

The agents' Buy-to-Let Index reports that rents increased by 1.9% between June and July, the fastest monthly rise in the Index's six year history.

Last month's average rent is 6.8% higher than the £753 recorded in July 2014.

The agencies say that the record-breaking figure has been driven by strong growth in Yorkshire & the Humber and the South of England.

All ten regions in England and Wales experienced growth when compared with July 2014.

In the past year, average rents have increased by 3.6% in the West Midlands, 2.5% in the East Midlands and 2% in Yorkshire & the Humber – the highest annual growth recorded in this region.

On a monthly basis, falling rents were recorded in just two regions, Wales and the East of England. 

The highest monthly increases were posted in the capital and the south east at 3.3%. Strong monthly rises were also recorded in the North West (1.4%) and the North East (1.3%). 

“Just when you think the rental market is accelerating at full throttle, it finds a way to shift into a higher gear. We’re seeing rent rises manage to hit record-breaking speeds on both monthly and yearly timeframes as far back as our data can go,” says Adrian Gill, director of estate agents Reeds Rains and Your Move.

“These rent rises are a reflection of heavier wage packets being fed back into economy now that the rust from the recession has been cleaned off the cogs.”