The growth rate of the average rent price in the UK has slowed down in May, according to the latest HomeLet Rental Index.
Although rents on new tenancies increased in most parts of the UK over the three months to May, the pace of growth is down on previous months.
Rent Price Growth Rate Slows in May
Excluding Greater London, the average rent on a new tenancy in the UK rose by 4.4% in the three months to May, compared with the same period last year. Although this represents a decrease from the 5.1% growth seen in the three months to January, rents continue to rise at a much faster rate than inflation in most parts of the country.
According to the report, rent prices increased in almost every area of the country, with 11 out of 12 regions recording rises.
The growth was led by Scotland, where the average rent increased by 10.6% annually, followed by a rise of 8.3% in the East Midlands.
The average rent in London is now £1,563 per month, after rising by 6.2% in the three months to May.
The North West of England was the only region to record declines in rent prices, down 1.9% year-on-year.
The new data will provide some encouragement for both landlords and tenants.
Many private tenants will be pleased to see the rate of rent price growth slow down, while the figures suggest that landlords continue to enjoy healthy rental yields after costs, despite a rush in the supply of rental property in May following a flood of landlords looking to complete on buy-to-let property purchases before the 3% Stamp Duty surcharge was introduced on 1st April.
The slowdown in rent price growth in May is likely to be part of a broader feeling of economic uncertainty ahead of this month’s EU referendum.
Recent research claims that property sales in the capital have halved as a result of uncertainty surrounding the vote on 23rd June.
Regional rent price growth in May
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