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ONS: Private Rents Up 2.3% in August

Rents have risen by 2.3% year-on-year, with tenants of private lets paying higher rental rates in August 2016, according to figures from the Office for National Statistics (ONS).

Rents have risen by 2.3% year-on-year, with tenants of private lets paying higher rental rates in August 2016, according to figures from the Office for National Statistics (ONS).

New analysis by the ONS show that the rental market in Great Britain strengthened further in the year to August, as rental prices grew by 2.3%.


The result is said to have been driven by a fall in London’s rental inflation, with private rental prices in the capital falling from 3.0% to 2.6%.


Figures from the report show private rents increased across all English regions in the year to August, with the South East seeing the largest rise at 3.4%; followed by the East of England at 3.3%.


However, increases were also seen in the in the East Midlands at 2.4% and the West Midlands at 1.8%, as well as in the North West at 1.1% and the North East at 0.9%.


According to the ONS, “inflation in the rental market is likely to have been caused by demand in the market outpacing supply”.


Quoting the Royal Institute of Chartered Surveyors (RICS)’s latest residential market survey, the ONS highlights that demand for rental property was found to have increased in the 3 months to August as reported by the firm.


Citing further data from RICS, the ONS emphasises that supply of rental properties has fallen as figures show a modest fall in landlords’ instructions in the month to August.


This data indicates that Britain is affected by an “overall mismatch in supply and demand”, which RICS says could lead to further price increases over the next year.


Earlier this week, property agency Knight Frank found that uncertainty post-Brexit and the introduction of Stamp Duty raises boosted demand and supply of rental property in prime central London’s rental market.

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