The average home rental price has gone up by the largest year-on-year amount in three years, according to new analysis. The latest Buy-to-Let Index from Your Move and Reeds Rains shows that the average price of renting across England and Wales is now 3.1% higher than in February of 2014. The average price across the two countries now stands at £766 per month as of February 2015.
Adrian Gill, director of estate agents Reeds Rains and Your Move, said: "House prices rising out of reach for people at the lower end of the market makes increasing demand in the private rented sector inevitable. A serious and substantial commitment to new builds is the only way to bring supply in line with demand."
On a regional basis, the East of England saw the biggest price hike in renting over the last 12 months, jumping from £714 to £787, a rise of 10.2%. This was the largest growth in any region for over five years, says Your Move and Reeds Rains. The North East and North West of England were the only two regions in England and Wales where prices dipped by -0.4% and -0.3% respectively.
Gill said that the price of rents in each region depends on how the jobs market looks in the various areas: "Here we have a perfect example of rents following the jobs market. With growth gathering around London, renters are moving to areas that allow them to commute into the capital. Rents are rising in line with the salaries of these new tenants.
"Landlords are providing a much-needed link between jobs and people. They have ensured that the UK's talented workforce has the flexibility to move to the places their skills can be best put to use."