The pace of rental growth in the UK slowed to 0.05 per cent in the month to October from a rise of 0.09 per cent the previous month, the Landbay Rental Index found.
The Index revealed that London was split in rental costs, with four boroughs (Westminister, Kensington and Chelsea, Richmond and Camden) featuring the UK’s bottom ten ‘rental fallers’ and seven boroughs experiencing rental growth. Bexley and Dagenham both saw rent rises of more than 3 per cent.
Hotspots for rental growth over the last 12 months include Luton (7.11 per cent), Edinburgh City (5.63 per cent) and Northamptonshire (5.59 per cent), with nine of the top ten ‘rental risers’ situated in England.
Landbay chief executive John Goodall says: “Rental growth is slowing across the UK, but the pace of change varies wildly between regions. Falling rents in some of the most expensive parts of the country, especially prime London locations, can distort the picture for the rest of England and the UK where rents are continuing to grow at a steady pace. In the last month alone, rents fell by -0.11% in London, while they continued an upward climb of 0.15 per cent in the rest of England.
“Any moderation in rental price inflation will always be welcomed by generation rent, the swelling population of aspiring homeowners and long term tenants. As this month’s Autumn Statement comes over the horizon, all eyes will be on how the UK’s chronic housing shortage will be addressed. Unless supply catches up with demand, there’s nothing to suggest overall rents will go in any direction other than up.”
The average UK rent is now £1,188, with London’s average at £1,889, and the rest of the UK being £748 per month.