Rents rising again in region after two falls
Rents in the UK rose by an average of 1.1 per cent during July, new data from HomeLet reveals.
That marks a return to positive inflation following two successive months in which rents fell.
In the North West, the average rent is now £698 per month, up from £688.
The average rent agreed on a new tenancy signed during July was £925, compared to £915 in the same month of 2016.
July’s 1.1 per cent annual increase compares to declines of 0.3 per cent and 0.2 per cent in May and June respectively, the first time rents had fallen in the UK since 2009. Inflation in the private rental sector continues to lag the general rate of inflation, which was 2.7 per cent in June, the latest month for which official data is available.
The Greater London rental property market continues to act as a brake on the UK as a whole, with rental inflation in the capital now running at -0.6 per cent a year according to the July HomeLet Rental Index. July was the fourth successive month in which London saw rents fall, and while the pace of decline is now slowing – July’s figure compares to a 2.9 per cent drop in June.
HomeLet’s chief executive officer, Martin Totty, said: “It’s often been the case in recent times that rents have strengthened over the summer period. It’s a time when renters contemplate moving, demand increases, tenancy terms are set, and when the anniversary of the tenancy often occurs.
“This year, that ‘seasonal’ factor brings some relief for landlords, who’ve endured a gradual erosion in rent prices.”