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Pace of Rental Growth in the UK Stable for Fifth Month

Index of private housing rental prices shows annual rate unchanged at 0.9%, rising to 1.4% when London is excluded

Private Rented Sector Property Market Growth UK England

The annual rate of growth for private rental prices remained unchanged again in November, according to the latest official figures.

In the 12 months to November, the average monthly rent paid by tenants increased by 0.9%, the Office for National Statistic’s index of private housing rental prices reveals.

This is the same year-on-year growth recorded in every month since July 2018, meaning monthly costs have risen by an average of £4.50 since November 2017 to £504.50.

The index suggests the overall slower rate of growth on a national level is due to a slowdown in London; excluding the capital, rental prices have increased by 1.4% over the same period.

In England, the amount of rent tenants paid has grown by 1.0% in the year to November, edging up from October’s annual rate of 0.9%, with this figure rising to 1.5% when excluding London.

A slightly stronger increase was registered in Wales, where rental prices rose on an annual basis from 0.7% in October to 0.9% in November, whilst in Scotland the rate eased down from 0.6% to 0.5%.

Breaking down the figures by regions reveals that private rental costs remained static in London at 0.0%, recovering from the 0.2% decline in rents in October.

Every other region recorded a positive growth in rents over the year, lead by the East Midlands at 2.7%, followed by the West Midlands at 1.8%, Yorkshire & the Humber and the East of England at 1.7%, and the South West at 1.6%.

In the South East, prices grew by 1.2%, whilst the North West matched the average across England with a 1.0% increase. The North East was the only region with below-average growth apart from London with 0.4%.

A similar picture emerged in the November rental index by buy-to-let lender Landbay, which revealed the Midlands and Yorkshire & the Humber had the highest annual rate of rental price growth.

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