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Londoners pay the most rent

publication date: Sep 6, 2011
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New figures released by Endsleigh show that despite the impact of the recession on the property sector, the lettings market has remained buoyant, with most rental prices in the UK steadily rising in the last two years.

The report, which looks at property rental prices since 2009, shows that the average cost in the UK has risen by 4 per cent, well above the inflation rate in 2010, which fell to as low as 3 per cent.

Prices for tenants have gone up in regions across the UK, however London is the most expensive area, costing double (£1372) the average rental price (£688) per month and tenants in the Capital have experienced an 8 per cent increase in their rents. Living in London costs over a quarter more than it does in Middlesex, the second highest priced region.

Surrey is ranked third with the price of a property costing £973. Scotland comes out cheapest, with a tenant paying just £299 per month for a property, almost half (43 per cent) of the national average. It too has seen an increase in value; last year tenants in Selkirk paid double what they did the previous year. However a tenant will still be paying 4.5 times less than a tenant in London. Lincoln, Stirling and Stafford also came out as good areas for tenants, being 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.”