Rents continue to rise whilst house price growth stalls
- Rents in the UK rose by 2.5% in September compared to the same time a month a year ago; the average monthly rent now stands at £967
- Rents in London increased by 3.3% in September this year compared to September 2018; the average monthly rent in the capital now stands at £1,694
- When London is excluded, the average UK rental value was £797 in September 2019, this is up 2.2% on last year
- HomeLet’s September Rental Index reveals that rents rose in all 12 of the regions covered in the research
The continued reduction in supply of properties available to rent appears to be the primary reason rental prices are increasing above the rate of inflation. As tenants stay in their homes for longer, and there are a smaller number of new landlords entering the market, then there are inevitable constraints on supply. However, rents are generally linked to both what tenants are willing - and able - to pay, which is helping ensure rents aren’t spiralling out of control.
Average house prices in the UK increased by 1.3% in the year to August 2019, up from 0.8% in July 2019 but remain below the increases seen this time last year. Over the past three years, there has been a general slowdown in UK house price growth, driven mainly by a slowdown in the south and east of England.
The lowest annual growth was in London where prices fell by 1.4% over the year to August 2019, followed by the south east where prices fell by 0.6% over the year.