Rental price inflation slows

HomeLet rental index reveals

• Average rents across the UK rose by 0.9 per cent in October when compared to the same month a year ago; the average monthly rent is now £909
• Rents in London rose 0.6 per cent in October, year-on-year; the average monthly rent in the capital now stands at £1,556
• On an annualised basis, rents rose in 11 out of the 12 regions of the UK covered by the research; however, the average rents secured in October were lower than in September in every region, contributing to a significant slowing in the annual rate of inflation.

Rents in the UK rose by an average of 0.9 per cent during October, new data from HomeLet reveals, the fourth successive month of increases following a short period of falling rents in the Spring. The average rent agreed on a new tenancy signed in October was £909 according to the October HomeLet Rental Index, compared to £901 in the same month of last year.

However, while October’s average increase reflects higher rents recorded in 11 out of the 12 areas of the country that HomeLet monitors – the South-East was the exception – the pace of rental price inflation has slowed.

October’s 0.9 per cent increase follows rises of 2.0 per cent and 2.4 per cent in September and August respectively. Indeed, on a monthly basis, rents on new tenancies in October were lower in every area of the country than in September.

The national picture was reflected in London where annualised rental price inflation was 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, compared to £1,593 in September. HomeLet’s regional data is available in more detail via an online interactive infographic.

Rental figures from the October 2017 HomeLet Rental Index

Region	Average rent in October 2017	Average rent in September 2017	Average rent in October 2016	Monthly variation	Annual variation
East Midlands	£618	£620	£596	-0.3 per cent	3.6 per cent
Northern Ireland	£625	£636	£604	-1.7 per cent	3.4 per cent
West Midlands	£683	£692	£663	-1.3 per cent	2.9 per cent
North West	£692	£697	£676	-0.7 per cent	2.3 per cent
Yorkshire & Humberside	£628	£630	£615	-0.3 per cent	2.1 per cent
Scotland	£621	£628	£608	-1.1 per cent	2.1 per cent
North East	£528	£529	£518	-0.2 per cent	1.9 per cent
South West	£790	£814	£777	-2.9 per cent	1.6 per cent
Wales	£612	£617	£603	-0.8 per cent	1.5 per cent
Greater London	£1,556	£1,593	£1,547	-2.3 per cent	0.6 per cent
East of England	£901	£914	£899	-1.4 per cent	0.2 per cent
South East	£977	£1,001	£985	-2.4 per cent	-0.8 per cent
UK	£909	£927	£901	-1.9 per cent	0.9 per cent
UK excluding Greater London	£755	£766	£744	-1.4 per cent	1.5 per cent
Notes:	Based on new tenancies in October 2017	Based on new tenancies in September 2017	Based on new tenancies in October 2016	Comparison of average rent in October 2017 and September 2017	Comparison of average rent in October 2017 and October 2016

 

HomeLet Rental Index Regional Variance Figures for October 2017: