NOVEMBER 04, 2016 | BY A & S Property
Rental price growth slowed in October
The pace of rental price growth in the UK slowed to 0.05% in the month to October from a rise of 0.09% the previous month, the latest findings from the Landbay Rental Index shows.
The greatest level of rental growth over the last 12 months included Luton at 7.11%, Edinburgh City at 5.63% and Northamptonshire at 5.59%, with nine of the top ten ‘rental risers’ situated in England.
Aberdeen saw the greatest fall in rents (-13.22%) and Aberdeenshire (-9.03%), with both markets hit by the sharp decline in oil prices since mid-2014.
Marginal rental price falls were also recorded over the past year in Inverclyde (-2.39%) and Dundee City (-0.87%), while it was a tale of two markets in London, with four prime boroughs in the capital (Westminister, Kensington and Chelsea, Richmond and Camden) featured among the biggest ‘rental fallers’.
Overall, Scotland has seen rents increase by an average of 1.55% over the past 12 months, the fastest growth of all the UK Home Nations, according to the index.
John Goodall, CEO and co-founder of Landbay said: “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% 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.
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