"While it may seem as though we are starting to see some much-needed relief for renters, the cost of renting a property remains a huge burden for the 4.3 million people in the private rented sector across the UK"
According to Landbay, in the capital however, rent fell for the ninth consecutive month, dropping -0.53% over the last year. As such, the average rent paid by a London tenant has dropped to £1,882, the lowest since September 2015.
Average rents in the London boroughs of Kensington & Chelsea, Westminster and Camden have seen the most significant fall in rents over the last twelve months, falling by -3.50%, -2.23% and -1.79% respectively. In contrast, rents within the boroughs of Barking and Dagenham, Havering and Redbridge have grown by 2.88%, 2.64% and 2.08% as demand for properties in the outer boroughs of the city increases.
In the rest of the UK, while rents continued to rise, the speed at which they are growing lagged to 0.10% in February, the slowest monthly rate since February 2013. Rents in England (without London), have seen the most substantial growth over the last year, growing by 1.92%, followed by Wales (1.37%) and Scotland (1.26%). Just Northern Ireland saw rental growth below the UK annual average of 1%, growing by 0.47% over the last twelve months.
John Goodall, CEO and founder of Landbay said: “While it may seem as though we are starting to see some much-needed relief for renters, the cost of renting a property remains a huge burden for the 4.3 million people in the private rented sector across the UK, especially in London where average rents are significantly more expensive than the rest of the country. Although this could give the impression that the market is beginning to turn a corner, this is a situation that is unlikely to change in the foreseeable future. Demand for rented accommodation will remain robust over the coming months and years and continue to stoke up rental values, as rising house prices, falling wages and rising inflation dampen the ability of aspiring homeowners to save for a property of their own.
Whether tenants are renting as a stepping stone on the way to home ownership or, increasingly, renting for life, people rely on a well-served buy-to-let market to ensure rental growth doesn’t become unbearable. The Chancellor’s decision not to raise the stamp duty threshold in this month’s Budget was yet another blow for first time buyers, so it’s important that we now see some clear follow through to the promises made in the housing white paper to ease at least some of the pressure on Generation Rent.”
