Rental rates in the UK continued to rise in March on a year to year basis, reaching a UK average rental rate of £904 per month.
According to the latest Homelet Rental Index, rental rates rose by 1.1 per cent year-on-year last month, a slight improvement on the 0.8 per cent seen in February.
Despite the rise remaining fairly small and below the general inflation rate, the trend now does seem to be going upwards, rising for the second successive month. Before February’s rise rental price inflation had fallen in every month since last June 2016.
The average rent in the UK now stands at £904, unless Greater London is excluded, which then brings it down to £751 per calendar month. Average rents in London are much higher at £1,546.
Rental rates in March rose in every area of the country bar two compared to February, with Yorkshire & Humberside and the North-West of England as the sole fallers. On an annual basis, rents were higher in March than a year previously in 11 out of 12 regions covered by HomeLet’s index, with the South-East registering a small fall.
The trends in rental rates reported within the HomeLet Rental Index are from brand new tenancies which were arranged in the most recent period, giving the most relevant insight into changes in the Private Rented Sector.
HomeLet’s Chief Executive Officer, Martin Totty commented: ‘In the current housing market, where demand for homes continues to outstrip supply and house prices are out of reach for many buyers, the long-term trend in the private rental sector is likely to be for rental price inflation to continue; however, the HomeLet Rental Index continues to reflect landlords’ focus on offering tenants affordable rents, with rents now increasing at a rate significantly below the general rate of inflation in the UK economy.’