Annual rent growth slows in September
Rents across the UK rose by 3% in the year to September, according to HomeLet, to an average of £910 a month.
This is the slowest annual growth rate recorded this year, and rents are down 0.8% when compared to August.
Rental price inflation was 4.5% in March 2016 and the rate of increase has now fallen in each of the past three months.
Homelet said that this slowing rate of increase reflects modest decreases in average rents in many areas of the country, which may suggest we are reaching overall affordability thresholds.
Martin Totty, the firm’s chief executive officer, said: “Landlords are being very careful to ensure rents remain affordable for tenants. Despite factors such as higher Stamp Duty on purchases for buy-to-let investors, and the tax changes coming in from April 2017, it would appear so far landlords have absorbed any actual or expected decreases in their yields, rather than pass this on through higher rents.”
Despite the rate of growth slowing, rents are up on last year in almost every area of the country.
While 10 of 12 regions saw a rise in rents over the last year, rents were unchanged in the North East and dropped 1.7% in Scotland.