Rents in the UK’s private rented sector increased by 0.9% in the 12 months to September 2018, unchanged from the year to August 2018, official data shows.
In England, rents grew by 0.9%, Wales experienced growth of 1% while Scotland saw rents increase by 0.6% over the period, according to the figures published by the Office of National Statistics (ONS).
The index report reveals that overall growth in private rents paid by tenants in the UK has slowed since the beginning of 2016 and this has been driven mainly by a slowdown in London over the same period.
London rents decreased by 0.2% in the 12 months to September 2018, however this was up from a fall of 0.3% in the 12 months to August 2018. While rents in the UK excluding London increased by 1.5% in the 12 months to September 2018, unchanged from August 2018.
A breakdown of the figures show that when London is excluded from England, private sector rents increased by 1.6% in the 12 months to September 2018.
In Wales rents increased by 1% in September 2018, still marginally higher than the annual rate of change for England but Wales recorded a broad increase in its annual growth rate between July 2016 and the end of 2017, but this has fallen back during 2018.
Rental growth in Scotland increased by 0.6% in the 12 months to September 2018, up from 0.5% in August 2018 but growth is weaker than it was in the middle of 2016.
In Northern Ireland rents increased by 1.7% in June 2018. It has seen an increase in its annual growth rate between the end of 2016 and the end of 2017, but has fallen back slightly during 2018.
On a regional basis in England, the largest annual rent year on year was 2.9% in the East Midlands, up from 2.8% in August 2018, followed by the South West with annual growth of 1.9% but this was down from 2.1% in August 2018 and the East of England up 1.9%, unchanged from August 2018.
The lowest annual rental price increase was in London, down 0.2%, but up marginally from a fall of 0.3% in August 2018. It was followed by the North East, up 0.2% which unchanged from August 2018.
Kate Davies, executive director of the Intermediary Mortgage Lenders Association (IMLA), pointed out that rents have remained at steady levels since January 2018, showing a modest rise this month but staying unchanged over the past 12 months.
‘Buy to let lenders have consistently drawn attention to the dramatic drop in new investment in rental property and warned that this will eventually work its way through to higher rents for tenants,’ she said.
‘We have also warned that the full effects of the regulatory layering imposed by the Government have yet to be fully realised, with another key milestone still to be reached in January when landlord’s tax bills will be due,’ she explained.
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