Rental growth outpacing cost of living across the UK

Rental growth outpacing cost of living across the UK

Rental growth outstripped inflation in all parts of the UK last month, research shows.

Data from tenant referencing provider HomeLet found that the average UK rent on new tenancies in February was £940 a month, up 3.8% annually.

When London is excluded the average rent in the UK is now at £782, up by 3.2% on last year.

In comparison, the current UK inflation rate is 1.8%.

All 12 UK regions saw annual increases in new rents last month, with the largest in the south-west of England, where rents were up 7.7% annually to £868.

London still had the highest rents at £1,599, up by 4% on last year, while the lowest was in the north-east of England at £524.

Rents were also up in most regions on a monthly basis except in the north-east of England where they fell 1.9% and Northern Ireland which was down 0.9%.