London’s rental growth rate slows
New data from the HomeLet Rental Index report for January 2016 reveals rent prices for new tenancies in Greater London are rising at the slowest rate for almost two years.
The South East of England and the East Midlands show highest annual rent increases.
Average rent in the UK (excl Greater London) is now £740 per month.
Average rent in Greater London is now £1,510 per month.
Commenting on the Homelet Rental Index report, Martin Totty, Barbon Insurance Group’s Chief Executive Officer, reportedly said:
“It’s notable that there has been a further fall in the rate at which average rents in the Greater London area are rising. In recent years, the capital has seen much faster rates of increase than the rest of the country, but it may be that an affordability ceiling has now been reached in London and that rents will now track other parts of the UK more closely.
“The fact that UK-wide average rents in the private rented sector continue to show sustained upwards growth reflects there is still strong demand for rental properties, driven mainly by the impact of the long term structural imbalance in supply and demand of property. Landlords achieving higher average rents over time also suggests that tenants starting a new tenancy are proving they can afford higher average rents – with demand outstripping supply, some would-be tenants may be able to outbid rivals for properties, which could drive higher rents.”
To see the report in full click here