Real rents drop in six out of eight UK regions over the last decade
Rents have dropped by two per cent in Great Britain since October 2008, with inflation outpacing rental growth in most of the regions, according to the latest research released by Hamptons International.
The report found that the East and London are the only two regions where rental growth has outpaced inflation, rising by 8% and 0.5% respectively since October 2008.
The Midlands has seen the biggest fall in real rents, down by eight per cent since October 2008, followed by the North down by seven per cent.
Rental growth on new let properties accelerated to two per cent across Great Britain in October 2018, the highest level since February as every region recorded a rise in rents.
The East of England saw the biggest increase in rents, up four per cent, year-on-year, while Scotland saw the slowest rental growth at one per cent. Rents in London grew for the second month in a row, up one per cent year-on-year.
Aneisha Beveridge, head of research of Hamptons International, said that real rents have been falling for the last 21 consecutive months, as a result of sluggish rental growth and a post-EU referendum backdrop of rising inflation.
She added: “However, this could be set to change as inflation begins to fade and rental growth starts to pick up pace. Currently the East and London are the only regions where real rents have risen over the last decade.”