UK new tenancy rents have increased by 1.7% in the last year taking the average monthly amount to £876, according to the latest data to be published.
However, month on month rents saw a slight decrease of 0.8%, down from £883 per calendar month in January, the analysis from Countrywide shows. The majority of regions saw an increase in rent in February, with Greater London seeing the largest increase, up 8.4% year on year.
Two and three bedroom newly let properties see the largest growth in rent, up 4.5% and 3% respectively year on year and two bedroom properties were the only property type to see a month in month increase in rent, up 0.7% to £816.
One and four plus bedroom properties saw a 2.9% decrease month on month, followed by three bedroom properties down 0.4%. It is only the four plus bedroom properties that did not see an increase in rent year on year as rent decreased 6.9% from £1,345 to £1,306 in February.
In the regions, the majority of the UK saw an increase in rent month on month, with central London seeing the greatest increase, up 2.5% to £2,629, followed by the Midlands up 1.7% to £652. Wales saw the greatest decrease in rent, down 7.5% to £616, followed by the South East, down 4.3% to £991.
Year on year, Greater London saw the largest increase in rent, up 8.4% to £1,251pcm and the South East the greatest decrease, down 8.1%. The firm said this is due to a fall in demand for rental properties in the region, as more tenants move out of the private rented sector and into the owner occupier sector.
The average UK rent for renewed tenancies in February is £841 per calendar month, an increase of 0.7% month on month and 1.9% year on year.
One and three bedroom properties saw a decrease in rent, down 1% and 0.1% to £674 and £874 respectively, when compared to January 2015. Two and four plus bedroom properties saw an increase of 0.9% and 3% to £770 and £1,390 respectively.
One bedroom properties were the only type to see a decrease in rent year on year, down 1%. Two bedroom properties saw a 2.4% increase, three bedroom properties a 2.6% increase and four plus bedroom properties an increase of 3%.
Central London and the South East saw the greatest increase, up 3.2% and 2.6% to £2,543 and £1,036 respectively when compared to January 2015. The Midlands see rent stay flat for the month on January and the East of England, Wales and Scotland saw decreases of 2.2%, 2.2% and 1.1% respectively.
The majority of regions have seen a slight increase in rent in February when compared to January. The greatest increase is in Scotland where rent increase 0.5% to £629 followed by Greater London up 0.4% to £1,142. Wales and Central London both saw a decrease in rent of 0.5% to £638 and £2,435 respectively.
The data also shows that arrears have decreased in all regions, a sign that households are perhaps better off now than at this time last year.