UK rents rise 2.6%, study shows

New rents in the UK jumped in value by 2.6 per cent in January year-on-year, marking the quickest rise for the month in two years.

According to the latest Countrywide Index, January saw 36 per cent of landlords increase their rent when signing a new tenancy, marking a rise from 27 per cent at the same time last year.

A breakdown of the statistics shows that rental growth has been spearheaded by areas outside of London, as rents in the capital were 2.7 per cent lower than last year.

On the other hand, they have gone up 8.8 per cent in Wales, 8.2 per cent in the South East and 7.8 per cent in the East of England. The highest rents are now £2,298 a month in central London and £1,260 in Greater London, representing drops of 6.6 per cent and 2.7 per cent respectively in comparison to January 2015.

A record number of landlords are paying for their buy-to-let properties in cash, with 61 per cent of landlords paying in cash, showing a rise from 59 per cent in 2015 and 41 per cent in 2007.

Landlords in the north west are most likely to pay in cash, whereas London-based landlords more commonly use mortgages and are more likely to fund their portfolios using a mortgage due to the higher prices in the city.