Average UK rents were up 0.9 per cent in October, however rental price inflation saw decline. Rents were found to be rising in 11 out of 12 regions, according to new data from the HomeLet index.
Year on year, the average monthly rent was 0.9 per cent, reaching £909 in October, up from £901 the previous month. This marks the fourth successive month of increases following a short period of decline earlier in the year. However, the rises are beginning to stabilise. October’s 0.9 per cent increase is down from the growth of 2 per cent and 2.4 per cent in September and August respectively. On a monthly basis, inflation was down 1.9 per cent.
Nationally, the average monthly rent excluding Greater London was £755 in October. This figure is up 1.5 per cent annually, but down 1.4 per cent monthly. September’s average stood at £766.
11 out of 12 regions in the country recorded higher rates, with the South-East the exception, in which the pace of rental price inflation has slowed. However, throughout all regions, rental price inflation slowed. This was epitomised in London, where annualised rental price inflation was just 0.6 per cent in October, down from 1.8 per cent and 2.5 per cent in September and August. The average tenancy agreed in London last month cost £1,556, down from 1,593 in September.
The East Midlands was the region with the strongest annual variation, at 3.6 per cent, with rents at £618 in October 2017, up from £596 in October 2016. However, there was a slight monthly decline, with rents down from £620 in September. Northern Ireland followed closely behind, with an annual increase of 3.4 per cent. October rents in 2017 stood at £625, up from £604 year on year. However, there was a similar monthly downturn, with prices dropping from £636.
To summarise, whilst rents continued in their general upward trend, there was a significant stifling in inflation. The average rents secured in October were lower than in September in every region, marking a significant slowdown in the annual rate of inflation.