In a story that PIMS published on the 3rd February "Latest figures shows that the North is catching up with South in rents", we predicted that it was only going to be a matter of time before the national asking price would rise above £1,000,has now been achieved.

According to a property specialist's rental index the average advertised monthly rent has hit £1,006.

The index shows that London and the South East continue to show a healthy rise in their rental pricing and is one of the major factors in the £1,000 milestone being attained.

The index shows that rents in London on average is now £2,300 per month, which beats the capital's surge in the 2012 Summer Olympics. The property specialist does warn that although there has been an increase of 4.58% - £103 over the past year, it could lead to the Capital's private rented market price reaching the "cusp" and end up peaking in the next year.

 

Scotland has seen a significant gain as its asking prices for rent since November 2013 has  risen to a record "high" of £726 per month. This is a 7.50% growth since May 2013 which on average is a £50 per month increase.

This growth has not been enjoyed by the North, as their advertised rents in the North East, North West and Yorkshire and Humber slightly decreased in May.

Robin King, director of the property specialist, said: “For the first time, the average advertised rent in Britain has risen above the £1,000 mark. This is still a tale of two markets however, with the South of the country continuing its steady growth path while the North is following behind.

 

“This record milestone emphasises that in certain regions across the country there isn't enough supply to keep up with demand in the private rental market. The regions around the capital have witnessed substantial growth in the last 12 months and have made a significant contribution to the national average rent going past £1,000 for the first time.

"Although this is a good news for landlords, the higher cost of renting will be hitting the pockets of tenants across the country. One of the solutions to bringing down the cost of renting is to build more houses.”