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Annual rental growth declines for first time in eight years
Original Author: Rosalind Renshaw
UK rental growth fell for the first time in almost eight years in May, according to HomeLet research.
Data from the latest Homelet Rental Index shows that the average rent on a new tenancy commencing in May was £901, 0.3% lower than in the same month of 2016.
New tenancies on rents in London were also 3% lower than this time last year at £1,502, the biggest fall for eight years.
This is the first time since December 2009 that the HomeLet Rental Index has reported a fall in rents on an annualised basis.
The pace of rental price inflation across the UK has been slowing in recent months, having peaked at 4.7% last summer.
Martin Totty, chief executive of HomeLet, said: “May 2017 saw average rents nationally fall for the first time in eight years when the economy had suffered the shock of the financial crisis.
“HomeLet rental data suggests landlords are now facing a difficult balancing act between ensuring rents are affordable for tenants in a low real wage growth environment whilst covering their own rising costs.
“Tenants will still need a vibrant and growing rented sector to provide them with property options at the time of their choosing. Any constraint to the supply of rental properties, because landlords are unable to achieve the reasonable returns they require, cannot be in the long-term best interests of tenants, especially if, as we’ve now heard from all the main political parties, the UK’s population continues to grow.”
|
Region |
Average rent in May 2017 |
Average rent in April 2017 |
Average rent in May 2016 |
Monthly variation |
Annual variation |
|
East Midlands |
£614 |
£604 |
£595 |
1.6% |
3.3% |
|
North West |
£679 |
£677 |
£664 |
0.2% |
2.2% |
|
South West |
£803 |
£802 |
£787 |
0.2% |
2.1% |
|
Wales |
£605 |
£610 |
£594 |
-0.8% |
1.8% |
|
East of England |
£909 |
£904 |
£904 |
0.5% |
0.6% |
|
Northern Ireland |
£609 |
£614 |
£606 |
-0.9% |
0.4% |
|
West Midlands |
£658 |
£661 |
£656 |
-0.5% |
0.3% |
|
Yorkshire & Humberside |
£614 |
£619 |
£618 |
-0.7% |
-0.6% |
|
South East |
£998 |
£1,003 |
£1,014 |
-0.4% |
-1.5% |
|
Scotland |
£622 |
£632 |
£634 |
-1.6% |
-1.9% |
|
North East |
£522 |
£525 |
£534 |
-0.7% |
-2.3% |
|
Greater London |
£1,502 |
£1,519 |
£1,548 |
-1.1% |
-3.0% |
|
UK |
£901 |
£904 |
£904 |
-0.3% |
-0.3% |
|
UK excluding Greater London |
£753 |
£754 |
£750 |
-0.1% |
0.5% |
|
Notes:
|
Based on new tenancies in May 2017 |
Based on new tenancies in April 2017 |
Based on new tenancies in May 2016 |
Comparison of average rent in May 2017 and April 2017 |
Comparison of average rent in May 2017 and May 2016 |
http://www.propertyindustryeye.com/new-rents-fall-for-first-time-in-eight-years/
