The most recent data released by Landbay has revealed that UK rental growth is currently at its lowest level since April 2013.
Rental growth across Britain slowed to 1% year-on-year in February, according to the analysis.
In London, rents fell for the ninth straight month and fell -0.53% in the course of the year. As a result, the average rent paid by a tenant in the capital has fallen to £1,882, the lowest since September 2015.
Typical rents in the boroughs of Kensington & Chelsea, Westminster and Camden saw the most substantial falls in the last year. Rents here slid by -3.50%, -2.23% and -1.79% respectively.
On the other hand, rents in the boroughs of Barking and Dagenham, Havering and Redbridge have risen by 2.88%, 2.64% and 2.08% respectively. This is a sign that demand for properties in the outer boroughs of London is increasing.
In the rest of Britain, while rents continued to move upwards, the rate of this growth slowed to just 0.10% in February. With the exception of London, rents in England saw the top rate of growth, reaching 1.92%. This was followed by Wales (1.37%) and Scotland (1.26%). Only Northern Ireland saw growth rise below the UK average of 1%, with rents here increasing by just 0.47% in the last twelve months.
UK rental growth at slowest level since 2013
John Goodall, CEO and founder of Landbay, observed: ‘While it may seem as though we are starting to see some much-needed relief for renters, the cost of renting a property remains a huge burden for the 4.3 million people in the private rented sector across the UK, especially in London where average rents are significantly more expensive than the rest of the country. Although this could give the impression that the market is beginning to turn a corner, this is a situation that is unlikely to change in the foreseeable future. Demand for rented accommodation will remain robust over the coming months and years and continue to stoke up rental values, as rising house prices, falling wages and rising inflation dampen the ability of aspiring homeowners to save for a property of their own.’
‘Whether tenants are renting as a stepping stone on the way to home ownership or, increasingly, renting for life, people rely on a well-served buy-to-let market to ensure rental growth doesn’t become unbearable. The Chancellor’s decision not to raise the stamp duty threshold in this month’s Budget was yet another blow for first time buyers, so it’s important that we now see some clear follow through to the promises made in the housing white paper to ease at least some of the pressure on Generation Rent,’ he added.