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Average property rent growth is currently matching inflation according to the latest July HomeLet Rental Index. The average property rent in the UK is now £959, up 2.3 per cent on the same time last year.
When London is excluded, the average property rent in the UK is now £794, this is up 2.2 per cent on a year-to-year basis.
In July, average rental values in London reached £1,665 and therefore were 73.6 per cent higher than the UK average of £959, or 109.7 per cent higher than the UK average excluding London.
The largest growth in property rents seen in London was in Westminster at 9.5 per cent over the year. This was followed by Bexley and Greenwich at 8 per cent. Camden and City of London was the worst performer, with rents falling by 3.4 per cent.
The rental growth recorded in July 2019 is in line with inflation, recorded at 2 per cent in the Consumer Prices Index (CPI) in June 2019.
The average property rent in London grew at a slightly higher rate than the national average, up by 3.1 per cent from the same time last year.
However, the standout region was the South West, where property rent growth was 4.5 per cent on a year-on-year basis between July 2018 and July 2019. Scotland and Wales followed closely behind, both recording annual property rental growth of 4.3 per cent in July.
All 12 of the regions monitored by HomeLet showed an increase in property rental values between July 2018 and July 2019, though on a monthly basis property rents were stagnant in Northern Ireland and fell by 0.2 per cent in the North east England.
The index also showed that property rents are becoming more affordable, with the household rent to income ratio falling in all regions, with the exception of Northern Ireland where it grew slightly by 0.8 per cent over the year.
HomeLet references over 500,000 tenants every year. The trends reported within the HomeLet Rental Index are brand new tenancies, which were arranged in the most recent period.