UK rents fell by -0.01 per cent in November 2017 – the first time rental growth has entered negative territory in at least half a decade
Rents across the UK began to shrink for the first time in over half a decade toward the end of 2017, falling by -0.01 per cent in November, as a two-speed market emerged between London and much of the rest of the UK. The average rent paid for a UK property grew by 0.53 per cent in 2017 (year to date), with falling rents in London (-0.83 per cent) weighing down otherwise resilient rental growth elsewhere (1.27 per cent).
These are the findings from the second edition of the National Rent Review from buy-to-let lender Landbay, powered by MIAC, which also reveals how much millennials can expect to spend on rent in their lifetime.
The National Picture
UK rents fell by -0.01 per cent in November 2017- the first time rental growth has entered negative territory in at least half a decade. The average UK rent has now plateaued at a record £1,196 per month, up from £1,190 at the turn of year. Removing London from the equation puts average rents at £759, up from £750 at the turn of the year, an extra £9 per calendar month or £109 per year.
The slowdown in rental growth has not been consistent across the country. The East Midlands (2.13 per cent), South West (1.63 per cent) and East England (1.57 per cent) experienced substantial growth in 2017 and are expected to climb further as we head into 2018. The North East has also seen rents grow at a faster rate in 2017 than at any other time in the past five years (0.65 per cent).