- Rent price rises slow in every region of the UK over the three months to August 2015 compared to the previous three months.
- Rents are still rising at double-figure rates on an annual basis and now stand 10.5% higher than a year ago.
- Across the UK, the average tenancy signed during the three months to August 2015 charged a rent of £992 per month
- In Greater London, the rent on the average new tenancy reached £1,558 per month during the three months to August 2015
Rent rises have moderated across the UK according to the latest findings from the HomeLet Rental Index. In every region of the UK, the pace of rent rises slowed and in some regions retracted over the three months to August 2015, compared to the previous three-month period.
The trend is particularly marked in areas where rents have been rising exceptionally quickly this year, notably the South East of England and East Anglia.
Nevertheless, on an annual basis, rent prices remain significantly higher than a year ago, with the average UK rent 10.5% higher than in the three months to August 2014.
Overall, the average UK rent on new tenancies has increased 1.6% in the three months to August 2015, compared to an increase of 2.2% for the three months to July and June 2015.
In the three months to August 2015, with the exception of Wales, where rents rose by 2.5%, no region saw rents increase by more than 2%. Three regions - the South East, North West and North East of England - saw rents fall during this period; the biggest fall was in the North East, where rents paid for new tenancies in the three months to August 2015 were, on average, 2.1% lower than in the three months to July.
Commenting on the report, Martin Totty, Barbon* Insurance Group’s Chief Executive Officer, said: “Rents continue to run slightly ahead of house prices, with the majority of the UK still experiencing rising rents, albeit at a much slower pace than we saw in the early part of 2015.
“On an annualised basis, however, rents in most regions are still significantly higher than the same period a year ago, with only the North West reporting lower rents for new tenancies in the three months to August 2015 than for the same period last year.”
HomeLet Rental Index regional rent price figures for the three months to August 2015
Martin Totty continued: “Broadly we are continuing to see a robust rental market with rent prices continuing to rise. This picture is consistent right across the UK with only one or two exceptions, such as East Anglia, where prices rose sharply in 2014 and early 2015 but have now slowed notably, and the South West, which continues to see annual price rises in double figures.
“We now ask ourselves: will the next few months see the pace of rent price growth resume, or has this slowing set the tone for the rest of 2015?”
Average Rental Value | HomeLet Rental Index (up to Aug-15)
Average House Price | Halifax House Price Index (seasonally adjusted, up to Aug-15)
Inflation | Office of National Statistics Consumer Price Index (up to Jul-15)
About the HomeLet Rental Index data
HomeLet Rental Index provides the most comprehensive and up-to-date data on new tenancies in the UK. As part of the referencing process for around 350,000 prospective tenants each year, HomeLet processes information including the rental amounts agreed, the number of tenants moving into the property, together with the employment status, income and age of all tenants. The trends reported within the HomeLet Rental Index are brand new tenancies which were arranged in the most recent period, giving the most relevant insight into changes in the Private Rented Sector. This is in contrast to many other rental indices which are based on all properties which are being managed, which may have had rental amounts agreed as long as two years ago.