Figures from the Office for National Statistics show that private rental prices grew by 0.9 per cent in November on an annual basis, the same rate that stretches back to July this year.
In England, this same figure stands at 1 per cent, and taking London out of the equation pulls this figure up to 1.5 per cent. In Wales growth over the same time period stood at 0.9 per cent and, in Scotland, by 0.5 per cent.
In Northern Ireland, annual growth in the 12 months to September stood at 1.6 per cent.
Taking London by itself, prices were flat when measured annually, up from the drop of 0.2 per cent recorded in October.
Data shows that growth in rental prices has slowed since April 2016, which the ONS says has been mainly due to the slowdown in London.
Intermediary mortgage lenders association executive director Kate Davies says: “Rental prices continue to be subdued and below the rate of consumer price inflation across much of the UK. Unfortunately, this disguises the fact that that not all is well in the private rented sector.
“BTL lenders continue to sharply reduce their new investment in rental property as more landlords withdraw from an increasingly unprofitable venture. This isn’t a new phenomenon. Our 2017 white paper, ‘Buy to Let: under pressure’, showed that the series of tax and regulatory changes imposed on the BTL market were stunting rental property investment and this trend has continued through 2018. We continue to raise concerns that this will eventually work its way through to higher rents for tenants, which will in turn make it still harder for those who are trying to save for deposits to buy their own homes.
“The latest UK Finance mortgage lending statistics reveal a 15 per cent fall in properties purchased by BTL investors in Q3 2018 compared to a year ago. According to recent analysis, in aggregate, landlords have sold more properties than they have purchased so far this year.
“Amidst this market contraction, we are concerned that the full effects of the regulatory layering imposed by the government are still to be fully realised, with another key milestone being reached next month when income tax changes are reflected in landlords’ tax bills for the first time.
“The private rented sector makes up an essential part of the housing market, providing homes for millions of tenants across the UK. BTL landlords represent an important element of the PRS, and it is important that the number of available rental properties does not decrease still further as a result of government regulation of BTL.”