UK rents are down 0.3 per cent year on year in June, according to HomeLet’s latest Rental Index.
Rents fell by 0.3 per cent in June, rendering the average monthly rent £908. This marks the second successive month to experience decline, with June’s fall mirroring the drop of 0.3 per cent also seen in May. The average rent agreed on a new tenancy during June was £908, down from £910 year on year.
Rents in London fell by 2.6 per cent in June this year compared to June 2016 with the average monthly rent in the capital now standing at £1,524. Rents in the capital have fallen on an annual basis for the last three consecutive months. This is in sharp contrast to their swift rise during the first half of the year, with rental price inflation in London having peaked at 7.1 per cent in June 2016.
Regionally, five out of 12 UK regions saw a decline. Excluding London, the South East and the East of England continued to demand the highest rents at £1,015 and £906 respectively.
HomeLet’s data has revealed that many landlords are opting not to raise rents in the current uncertain economic climate, despite demand outstripping supply. This is largely down to the choice to remain affordable for potential tenants.
UK rental price inflation has now been declining for the past year, since June 2016. During June,rents were up 4.5 per cent on an annual basis, but since then the rate of growth has dropped monthly to reach -0.3 per cent. However, this has since appeared to stabilise, with the rate of decline remaining consistent between May and June.
Commenting on the research, HomeLet’s Chief Executive Officer, Martin Totty said: ‘It is now a full year since rental price inflation in the UK peaked at 4.7 per cent, since when we’ve seen progressively more modest rent increases and, over the past two months, falls in some areas of the country; June’s figures are the first indication that this trend may now be beginning to flatten out, but it’s too early to say this with any certainty – the next few months of data from the HomeLet Rental Index will provide crucial intelligence on the direction the market is taking.’