Cost of renting in the UK up 2.3% year-on-year in July, 2.2% excluding London and above 2% inflation rate
Rental growth across the UK matched last year’s annual rate in July, according to the latest figures from HomeLet.
In the 12 months to July 2019 the cost of renting privately increased by 2.3%, the same level of growth recorded in July 2018, with the average price to rent in the UK now £959 per calendar month.
Excluding London, the index reveals a slightly lower annual rate of growth for the rest of the UK at 2.2%, and an average rent per month of £794.
This puts July’s rental growth in line with inflation, which was recorded as 2% in the most recent Consumer Prices Index (CPI) in June.
All regions of the country registered an increase in rental prices over the last 12 months, although it notes that rental growth was flat in Northern Ireland and negative at 0.2% in the North East between June and July.
Rents in the capital have increased by 3.1% since July 2018 to an average cost of £1,665, which is more than double the cost of renting across the rest of the UK.
However, the South West had the highest rate of growth of 4.5% during the same period, closely followed by a 4.3% increase in both Scotland and Wales.
In addition, the index highlights that private sector rents are becoming more affordable for tenants, with household rent-to-income ratios declining across all regions of the UK except for a slight increase in Northern Ireland.
According to the Association of Residential Letting Agents (ARLA), the ban on tenancy fees is leading to higher rental costs for tenants.