The Homelet Rental Index reports that in the three months to July, average monthly rental values for new tenancies in the UK (£977) were 11.8% higher than in the same period last year. Average monthly rents (£1,538) in London in the three months to July rose by 9.5% on the same period in June 2014.
Nick Barnes (NB), Head of Research at Chestertons:
The shortage of properties available to rent is fast becoming as acute as that in the sales market in some locations, and in London is arguably worse. This suggests that rents will continue to rise for some time to come. The Government has introduced a raft of new red tape and has signalled it will prefer against more buy-to-let development in future, which will likely shorten supply still further and inevitably push rents up.