Rents outside London ‘rising at fastest pace in over a decade’

Demand for rental property, coupled with lower levels of supply, will continue to put an upward pressure on rents, Zoopla said.

The increase means renters face paying nearly £500 more per year than they did a year ago (Yui Mok/PA) (PA Wire)

Rents outside London are increasing at their fastest pace in more than a decade as tenants swing back into city life, according to a property website.

The increase means renters face paying nearly £500 more per year than they did a year ago.

Rental prices across the UK, excluding London, are up by 5% year on year, driven by soaring demand in major cities amid limited supply, the report said.

The 5% increase is the biggest since Zoopla’s index started in 2008.

Average rents for the UK, excluding London, were put at £790 per month, up from £752 a year ago.

Overall demand for rental property is likely to remain higher than usual in the coming months, amid this swing back to city life

Grainne Gilmore, Zoopla

This adds up to renters paying an average of £456 more per year.

Grainne Gilmore , head of research at Zoopla said: “The strong levels of rental demand seen across the UK during August will moderate in line with seasonal trends, but overall demand for rental property is likely to remain higher than usual in the coming months, amid this swing back to city life.

“As ever, much will be dependent on the extent to which the current rules around Covid continue as they are.

“But given no deviation from the current landscape, the demand for rental property, coupled with lower levels of supply, will continue to put upward pressure on rents.

“In London, this will translate into rental growth returning to positive territory late 2021 or early 2022.”