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Rent rises retreat but UK average yearon-year rise maintains double figures
Rent rises have moderated across the
UK, according to the latest findings
from the HomeLet Rental Index. In
every region of the UK, the pace of
rent rises slowed and in some regions
retracted over the three months
to August 2015, compared to the
previous three-month period.
The trend is particularly marked
in areas where rents have been
rising exceptionally quickly this year,
notably the South East of England and
East Anglia.
Nevertheless, on an annual basis,
rent prices remain significantly higher
than a year ago, with the average UK
rent 10.5% higher than in the three
months to August 2014.
Overall, the average UK rent on
new tenancies has increased 1.6%
in the three months to August 2015,
compared to an increase of 2.2% for
the three months to July 2015.
In the three months to August 2015,
with the exception of Wales, where
rents rose by 2.5%, no region saw
rents increase by more than 2%. Three
regions – the South East, the North
West and the North East of England
– saw rents fall during this period;
the biggest fall was in the North East,
where rents paid for new tenancies in
the three months to August 2015 were,
on average, 2.1% lower than in the
three months to July.
Commenting on the report, Martin
Totty, Barbon* Insurance Group’s
Chief Executive Officer, said: “Rents
continue to run slightly ahead of house
prices, with the majority of the UK still
experiencing rising rents, albeit at a
much slower pace than we saw in the
early part of 2015.
“On an annualised basis, however,
rents in most regions are still
significantly higher than the same
period a year ago, with only the North
West reporting lower rents for new
tenancies in the three months to
August 2015 than for the same period
last year.”
Martin Totty continued: “Broadly, we
are continuing to see a robust rental
market with rent prices continuing
to rise. This picture is consistent
right across the UK with only one or
two exceptions, such as East Anglia,
where prices rose sharply in 2014
and early 2015 but have now slowed
notably, and the South West, which
continues to see annual price rises in
double figures.
“We now ask ourselves: will the next
few months see the pace of rent price
growth resume, or has this slowing set
the tone for the rest of 2015?”
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8 Landlord & Buy-to-Let Issue 61 • September 2015