You are here: Home - News -

Rental growth starts to stutter

by:
  • 03/02/2017
  • 0
Rental growth starts to stutter
Average UK rents rose by just 0.7% in January, compared to the same month of 2016, according to the latest HomeLet Rental Index.

This is a drop from an annual rate of inflation of 1.7% in December.

The average rent for a new tenancy starting in January was £888 per month, compared to £882 in January 2016.

Seven months of falls

UK rental price inflation has now fallen for seven months in a row, said Homelet, from a high point in June 2016, when rents were increasing at an annual rate of 4.7%.

The landlord insurance provider suggests that, if the current growth trend continues, average UK rents could start to fall within months.

The slowdown in rental price inflation has been most marked in areas that previously saw the largest increases. In Greater London, annual rental price inflation was just 0.4% in January, compared to a peak of 7.1% last July.

In the South East, annual rental price inflation is already negative, with rents on new tenancies agreed in January down by 0.6% compared to January 2016. As recently as last June, rents in the region were rising at a rate of 4.0%.

Martin Totty, HomeLet’s chief executive officer, said: “Our data has been showing, for some time, that landlords do not feel able to raise rents on new tenancies at anything like the pace seen during 2015 and the first half of 2016. Now it is even possible that rents will begin falling, which would be unprecedented in recent times.”

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Paul Nye, business development, Stonebridge Group
Stonebridge pledges further growth after busy year

Mortgage and insurance network Stonebridge has pledged to continue growing its business after a busy 2016, with plans to make...

Close