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The latest HomeLet Rental Index shows a positive view of the buy to let investment property market.
The rental index shows positive growth in UK rents, up by 2.5 per cent on the same time last year to reach an average of £932 per calendar month.
When London is excluded, the average rent in the UK has now reached £775 per calendar month, this is up by 2 per cent on last year.
Contradicting the Landbay Rental Index reported last week, HomeLet show rental growth in the capital as very positive, up by 3.7 per cent on the same time last year to reach an average of £1588 per calendar month. This represents a figure 104.9 per cent higher than the £775 average seen in the rest of the UK.
Across London boroughs the most positive rental growth seen was in Westminster where rents were up by 9.7 per cent year-on-year to strengthen its position as the borough with the highest average rent at £2356 per calendar month. Haringey and Islington followed closely behind with positive growth of 9.5 per cent over the past year.
Chelsea, Fulham, Hammersmith and Kensington came next with annual growth of 8.5 per cent, while the boroughs of Wandsworth and Hackney and also Newham enjoyed positive growth of 8.2 per cent.
Of the 21 London boroughs covered only four showed negative annual rental growth. The worst performer was Camden and City of London where rents fell by 12.3 per cent. Croydon, Hounslow and Richmond upon Thames, and Tower Hamlets also saw rents fall by 5.6 per cent, 2.1 per cent and 1.3 per cent respectively.
Despite the positive rental growth of 3.7 per cent enjoyed by buy to let property investors in London, it was not the strongest performance in the country. This accolade went to the South West where rental growth was even more positive at 5.1 per cent between January 2018 and January 2019 to reach an average of £859 per calendar month.
HomeLet reference over 500,000 tenants every year to provide comprehensive and up-to-date data on rental values in the UK.
The trends reported within the HomeLet Rental Index are brand new tenancies, which were arranged in the most recent period, providing an in-depth insight into the lettings market.