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Average monthly rent to climb above £1,000 this year

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Average monthly rent to climb above £1,000 this year

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Published by Max Salsbury for 24dash.com in Housing and also in Finance

London rents up 7.6% in 12 months - new figures London rents up 7.6% in 12 months - new figures

Average monthly rental costs across Britain are on track to climb above £1,000 this year, according to property firm Move With Us.

In January, the country's average advertised rents rose by £7 (0.77%). Scotland led the pack, ahead of London, having experienced the biggest growth in asking rents with an average increase of £16 (3.57%). The average rent in the region now stands at £676 per month.

Compared with January 2013, the overall rental market in Britain has increased by an average of £16 (1.63%). The average advertised rent is now £987 per month - on track to surpass the £1,000 mark this year.

Average advertised rents in Greater London rose by £13 (0.61%) to £2,221 per month in January. Asking rents in the capital remain the most expensive in the country and are almost double those in the second highest performing region, the South East, where the average asking rent currently sits at £1,138 per month.

It was better news for tenants in Wales and in the North East where rents fell by an average £6 (0.98%) and £11 (1.77%) respectively when compared to the same time last year. However, the reductions resulted from sharp increases felt by both areas in the last quarter of 2013, when the average rent increased by approximately £60 in each region.

In January 2014, average advertised rents stood at £679 per month in Wales and £695 per month in the North East.

Robin King, director of Move with Us, said: “Landlords in Scotland have seen a strong start to the year benefiting from good rental yields in places such as Aberdeen due to the high wages and short employment contracts of the oil and gas industry.

“London continues to operate in its own bubble and asking rents are on the rise again following declines.

"It is likely that the current increase in average asking rents is a sign of further increases to come as the population growth in Greater London carries on. Figures from the Office for National Statistics put the population of the capital in excess of 8.17 million people, over one million people more than 10 years ago. With the number of new homes being built not keeping pace with the rising population, competition for rental properties is becoming fiercer, pushing rental prices up.

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