National monthly rents increased 8% annually to £763 in spite of a seasonal dip of 2% on month according to the latest Sequence Lettings Index
The number of new tenancies agreed increased 13% annually highlighting the strength of the market compared to last year.
In London average rents rose annually by 3% to £1,417 despite a fall last month of 3% and the number of new tenancies in London is up 11% annually, slightly less than the UK average.
Buy to let mortgage applications have remained strong, up 17% annually, as investors continue to enter the market. As a result of the growing number of buy-to-let investors, the number of new rental properties coming to market is up 6% annually.
Stephen Nation, Head of Lettings for Sequence, a 300 branch network which also includes Barnard Marcus, William H Brown, Fox & Sons comments:
“There is a common misconception that when the sales market is booming the rental market lags behind, but our figures disprove that theory entirely. The annual growth of rents across the UK (up 8%) highlights just how far the rental market has come in 2013 and with transactions up 13% annually it is clear that the demand for rental property is stronger than ever.
“Buy-to-let mortgage registrations remain high, up 17% annually, and we are now seeing the tangible effect of this buoyant mortgage market with an increase in new properties for rent. The increase in the supply, up 6% annually, is being met with an 8% rise in new tenant applications or demand, which represents a very healthy and balanced market.
“Indeed, this strong growth in supply is carrying on into 2014, with the first two weeks of the year seeing a 6.5% increase, on month, in new properties available to rent. Demand is continuing to keep pace with supply so I would predict the number of transactions to increase significantly as the year progresses.”
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