Rental prices are continuing to rise in the new year, with the PRS showing strength across the board and January's prices indicating annual rises in 11 out of the 12 UK regions, the latest HomeLet Rental Index has shown. According to the data, only the north-west region has not seen a rise in the last year, with average rental prices having fallen 3.6 per cent in the region when compared to January of last year. However, it's a rosier picture for the PRS as a whole, with HomeLet showing that the average rental price excluding Greater London, has now risen to £740 per calendar month as of the end of January this year. In the capital, prices are more than double this (104 per cent), with an average of £1,510 per calendar month. What this means is that nationwide prices excluding London are up by 5.5 per cent year-on-year, with the capital eclipsing these increases with its annual growth of 6.2 per cent. Although this rate of growth in London is the slowest we've seen annually for some years, it suggests a maturing market that still retains health and a sustained level of demand at present. Strong rises across the country can be attributed to a number of different factors. Chief among these is the continued supply and demand issue, which causes people to enter bidding wars in some cases, pushing the price that they pay for new tenancies up ever so slightly. On top of this, the continued improvements in employment and wages means that people are prepared to pay more than they have in the last few years, growing increasingly confident of their ability to afford better homes. Martin Totty, chief executive of Barbon Insurance Group, the parent company of HomeLet, said these figures show that the rental market in general remains in a very strong position this year. "The fact that UK wide average rents in the private rented sector continue to show sustained upwards growth, reflects there is still strong demand for rental properties, driven mainly by the impact of the long term structural imbalance in supply and demand of property," he said. "Landlords achieving higher average rents over time also suggests that tenants starting a new tenancy are proving they can afford higher average rents. With demand outstripping supply, some would-be tenants may be able to outbid rivals for properties, which could drive higher rents." Find out more about letting agency software
According to HomeLet Rental Index’s latest report, UK rental prices are continuing to rise in 11 out of 12 UK regions, with only north-west showing a decline in rental prices of 3.6%. As of 2016January 2016, the average price of a rented property outside London stood at £740 pcm, whereas in the capital prices were double, averaging £1,510 pcm, putting overall UK rental property prices up 5.5% YoY, with London posting annual growth of 6.2%, reflecting the slow but steady maturing of the capital’s rental market due to sustained demand. The continuing short supply and high demand for housing, and improved levels of employment and salaries, are expected to keep the UK rental market strong throughout January 2016.