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Rental Growth Stagnates Across the UK

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Rental growth across Great Britain remains flat.

According to the Office of National Statistics (ONS), private rental prices rose just 1.5% in the 12 months to October, down from 1.6% in September and August.

The ONS Index of Private Housing Rental Prices recorded 1.5% growth in England, 1.5% growth in Wales and just 0.4% growth in Scotland.

But in prime central London, rental prices have continued to fall according to Knight Frank. At the same time, the International Agent reported that the number of new prospective tenants increased 19.6% annually from January to September of this year.

Despite stagnant rental growth, Rightmove’s latest data shows that new advertised asking prices seem to be going up.

Martin Totty, chief executive of HomeLet commented: “While it is perhaps too early to conclude, this data signals the re-emergence of an upward trend in rents…

“In a sector where demand for rental properties generally outstrips supply, most informed commentators suggest higher externally imposed costs on landlords will inevitably translate into higher rents to tenants.

“This may prove to be the start of that upward movement, especially if tenants are left competing for fewer rental properties because some landlords decide the returns from property investment are being eroded by factors beyond their control.”

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