Rental price inflation experiencing another slowdown
Inflation in the UK is currently standing at 3.1%, December 2016 marked the last time that average rental price growth exceeded inflation, when HomeLet Rental Index recorded a 1.7% rise against a consumer price index (CPI) of 1.6%.
There are significant regional variations, with quick rises in rent in some parts of the UK. Annual rental price inflation in excess of 3% has been recorded during November in Northern Ireland, the East Midlands, the South-West and the North-East of England. Meanwhile negative figures have been recorded in Greater London, the East and the South-East of England.
In London rents fell by 0.2% in November, with the average monthly rent in the capital staying at £1,530 in comparison to £1,556 in the previous month. This also marks the fifth month this year that the capital has recorded negative rental price inflation.
On a national scale, rental price inflation would have been 1.1% rather than 0.7% if London had not experienced such a slowdown in rental values.
Additionally comparing November to October on a monthly basis, average rents fell in 10 out of 12 regions of the UK last month, with only South West and North East of England recording positive figures.
Commenting on the research, HomeLet’s chief executive, Martin Totty, said: “So far this year we have seen very modest rental price inflation; rents are now higher than a year ago in most parts of the country, but there has been no return to the more rapid increases we last saw during the first half of 2016.”
He added: “HomeLet’s monthly data continues to support a picture of modest increases in rents over 2017 and, in most instances, a reduction in real terms against the backdrop of underlying higher inflation.”
At Discount Landlord we are able to provide you with competitive Landlord Insurance quotes to the private rented sector for properties including unoccupied properties. Give us a call on 0800 294 4522 today!