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Homelet: January’s Annual Rental Inflation Up by 0.7%

Figures from HomeLet’s Rental Index show that tenants across the UK paid an average of £888 pcm in rental costs, a 0.7% increase from the same period a year earlier.

Figures from HomeLet’s Rental Index show that tenants across the UK paid an average of £888 pcm in rental costs, a 0.7% increase from the same period a year earlier.

Whilst the speed of rental growth has decelerated when compared to January 2016, rental values continue on an upward trajectory in 10 out of 12 regions in the UK.


As rental values continue to rise, tenants are seeing 28.4% of their income spent in their monthly rent payments in January, said the tenant referencing firm.


On a monthly basis, average UK rental values have reduced slightly for the fifth consecutive month, sliding by 0.4% from December 2016.


Echoing Homelet's previous press release, January’s rental index showed that the slow-down in rental inflation has been most marked in areas that previously saw the largest increase, with rents across southern regions being outpaced by rental growth across the north.


Northern Ireland and Wales witnessed the greatest increases, with rents in these regions rising by 4.8% and 3.8% to an average of £602 and £606, respectively.


Whilst tenants renting in the capital, the South East and South West saw rental costs rise by 0.4%, 0.1% and decline by -0.6% - a staggering difference from the increases witnessed in the north.


Commenting on 2017’s first rental index, Martin Totty, Homelet’s Chief Executive, said that moving forward, there’s a potential for economic uncertainty to continue thwarting rental inflation in the short-term.


He adds, however, that whilst the sector faces more challenges, such as a tougher tax regime, there’s “no sign of landlords panicking” and that the prospect of an end to the fundamental supply demand imbalance in the UK’s private rented sector is unlikely.


Nonetheless, he expects landlords and tenants alike to monitor the market very closely in the months ahead.

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