Declines in London, Yorkshire, and West Midlands creates first fall in rent paid in the 10-year period
The amount of rent paid by tenants in Great Britain saw a modest decline in 2018, the latest lettings research by Hamptons International revealed.
Over the last decade, the amount spent on renting by private renters has increased by £29.9 billion. However, last year, tenants paid £59.1 billion on rent, some 3% (£1.9 billion) less than in 2017 and the first fall since 2008.
The biggest decreases in rent paid were in London (-£0.62 billion), Yorkshire & the Humber (-£0.49 billion), and the West Midlands (-£0.36 billion), which together amounted to more than three quarters, or 78%, of the total decline.
Most other regions reported more moderate decreases, whilst just two – the North East and East Midlands – registered an increase in spending of £0.06 billion and £0.13 billion respectively.
Hamptons attributes the decline to a drop in the number of privately renting households, as well as the slowdown in rental growth for newly let properties, which in January was 0.6% on an annual basis; notably below the 2.4% rate recorded in January 2018.
Commenting on the figures, Aneisha Beveridge, Head of Research at Hamptons International, said: “The slowdown over the last year was mainly driven by London, but rents are now gradually starting to rise again in the capital. Meanwhile the South East and South West both recorded falling rents last month.”
In the most recent English Housing Survey, the overall number of privately renting households remained broadly unchanged in 2018 at 4.5 million.