You are here: Home - Mortgages - Buy To Let - News -

UK rents could start to fall within months

0
Written by: Christina Hoghton
03/02/2017
Average UK rents rose by just 0.7% in January, compared to the same month of 2016, according to the latest HomeLet Rental Index.
UK rents could start to fall within months

This is a drop from an annual rate of inflation of 1.7% in December.

The average rent for a new tenancy starting in January was £888 per month, compared to £882 in January 2016.

Seven months of falls

UK rental price inflation has now fallen for seven months in a row, said Homelet, from a high point in June 2016, when rents were increasing at an annual rate of 4.7%.

The landlord insurance provider suggests that, if the current growth trend continues, average UK rents could start to fall within months.

The slowdown in rental price inflation has been most marked in areas that previously saw the largest increases. In Greater London, annual rental price inflation was just 0.4% in January, compared to a peak of 7.1% last July.

In the South East, annual rental price inflation is already negative, with rents on new tenancies agreed in January down by 0.6% compared to January 2016. As recently as last June, rents in the region were rising at a rate of 4.0%.

Martin Totty, HomeLet’s chief executive officer, said: “Our data has been showing, for some time, that landlords do not feel able to raise rents on new tenancies at anything like the pace seen during 2015 and the first half of 2016. Now it is even possible that rents will begin falling, which would be unprecedented in recent times.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
energy bills
Npower to hike energy prices adding £100+ to average bills

More than a million Npower customers will see their energy bills rocket by an average of nearly 10% from mid-March.

Close