Rental price inflation remains low in March
According to the latest data from HomeLet, rental price inflation in the UK remained modest during March - increasing by a small amount for the second successive month, following seven months of falls and remains below the general rate of inflation.
Rents in the UK rose by an average of 1.1 per cent in March, compared to the same month of last year, HomeLet’s data shows, up from an average increase of 0.8 per cent in February. Prior to that, rental price inflation had fallen in every month since last June. By contrast, general inflation now stands at 2.3 per cent.
March’s rental price inflation means that tenants signing up to a new tenancy last month agreed to pay an average rent of £904 a month, or £751 stripping out the Greater London market. In London itself, the average rent now stands at £1,546.
Rents 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.
Martin Totty, HomeLet’s Chief Executive Officer said: “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.”