Rents rise as housing market remains subdued by Brexit

UK rent prices are up while house price growth remains stagnant. Photo: Blake Wheeler/Unsplash
UK rent prices are up while house price growth remains stagnant. Photo: Blake Wheeler/Unsplash

Rent prices in the UK are up as the housing market remains subdued because of Brexit uncertainty.

Annual house price growth remains low for yet another month, at just 0.4%, according to Nationwide’s House Price Index for October.

“The underlying pace of growth appears to have slowed as a result of weaker global growth and an intensifying of Brexit uncertainty,” the report said.

READ MORE: House prices increased 1.3% in September

Meanwhile, a survey by tenant referencing firm HomeLet shows average rent in the UK is now £953 – an increase of 2.7% on last year.

When London is excluded, the average rent in the UK is now £788. This is an increase of 2.6% on last year.

In October, average rental values in London were about £1,665 – a 74.7% higher than the national figure.

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Westminster currently has the highest average rent price in London, at about £2,608.

However, Lambeth (£2,156), Camden and the City of London (£2,069), Chelsea, Fulham, Hammersmith and Kensington (£2,028) and Wandsworth (£1,869) follow closely behind.

Meanwhile, Croydon (£1,092) Redbridge and Waltham Forest (£1,238), Barking, Dagenham and Havering (£1,256), Bexley and Greenwich (£1,362), and Harrow and Hillingdon (£1,378) have the lowest rent in the capital.

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All 12 UK regions monitored as part of the study showed an increase in rental values, HomeLet said. However, five regions – the north-east, north-west, Yorkshire and Humberside, the south-west and Scotland – showed an annual increase of over 3%.

The north-east had the largest increase of 4.5% in the year to October 2019. This was followed by the north-west, which saw an annual increase of 4.3%.

Scotland saw an increase of 4.2%, the south-west 3.6% and Yorkshire and the Humber 3.5%.

READ MORE: UK property – why house prices are so high

Northern Ireland and Greater London also saw greater increases than the national average, at 2.9% and 2.8%, respectively.

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