Business

North's rental rates outpaces the rest

GROWTH in home rental rates in Northern Ireland outpaced the rest of the UK last month, according to research.

The latest HomeLet Rental Index put the average rental rate in February at £596 - up 7.2 per cent on the previous month, a greater percentage rise than anywhere in Britain. Across the UK, the average rent is now £899, an increase of 1.1 per cent on January. Average rent prices over the three months to the end of last month revealed growth was greatest in the north-east and south-west of England. However, there was growth too in Northern Ireland, up 1.6 per cent in that period. Looking solely at new tenancies commencing in the month of February 2015, prices have increased in the month since January 2015 in several regions, with the north rising 7.2 per cent, the north east of England by 6.2 per cent, the south west of England by 4.5 per cent, and East Anglia by 3.7 per cent. In contrast, rents agreed on new tenancies in London in February have fallen by 2.5 per cent compared to the previous month. Scotland, the east midlands and Wales have also seen prices agreed on new tenancies fall last month compared to January. Martin Totty, chief executive officer, Barbon Insurance Group, parent company of HomeLet, said: "2014 saw the London rental market outstrip the rest of the UK in terms of rent price growth. "But what we are seeing so far in 2015 is the private rental market becoming much more broad-based with the strongest rent price growth occurring outside of the capital. "Other regions of the UK such as the south west of England and East Anglia are maintaining the rises achieved in 2014 and continuing to grow."