Rent increases drop to lowest level since 2013 - while London prices continue to fall

Rent increases across the UK have slowed to their lowest level since 2013, fresh data has revealed, with prices in London falling yet again.

Figures from Landbay show that rents increased nationally by just 1% to £1,190 in the year to February, the lowest rise since April 2013.

In London, rents declined by 0.5%, led by falls in the London boroughs of Kensington & Chelsea (-3.5%), Westminster (2.23%) and Camden (1.79%) over the last 12 months.

But some regions in the capital saw rents rise, most notably in outer boroughs like Barking and Dagenham, Havering and Redbridge where they have grown by 2.88%, 2.64% and 2.08% respectively.

John Goodall, CEO and founder of Landbay, said: "While it may seem as though we are starting to see some much-needed relief for renters, the cost of renting a property remains a huge burden for the 4.3 million people in the private rented sector across the UK, especially in London where average rents are significantly more expensive than the rest of the country.

"Although this could give the impression that the market is beginning to turn a corner, this is a situation that is unlikely to change in the foreseeable future.

"Demand for rented accommodation will remain robust over the coming months and years and continue to stoke up rental values, as rising house prices, falling wages and rising inflation dampen the ability of aspiring homeowners to save for a property of their own."

UK Rental Index

FEB 16

YoY %

MoM %

Av. £

UK

1.00%

0.04%

1,190

England

0.97%

0.03%

1,222

Scotland

1.26%

0.11%

722

Wales

1.37%

0.11%

635

London

-0.53%

-0.08%

1,882

UK without London

1.84%

0.10%

751

UK Rental Index by number of beds

1 bed

2 bed

3 bed

YoY%

MoM%

Av. £

YoY%

MoM%

Av. £

YoY %

MoM%

Av. £

UK

.80%

.02%

1,012

.88%

.03%

1,152

1.28%

.06%

1,320

England

.75%

.01%

1,046

.84%

.03%

1,187

1.29%

.06%

1,341

Scotland

1.32%

.15%

546

1.26%

.12%

687

1.29%

.04%

1,108

Wales

1.82%

.12%

540

1.35%

.11%

652

1.09%

.03%

607

London

-0.47%

-0.08%

1,455

-0.72%

-0.07%

1,928

-0.40%

-0.12%

2,686

UK minus London

1.85%

.1%

593

1.72%

.09%

708

1.86%

.13%

817


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