Increased supply sees rents cool across Britain
New data suggests that the level of rents achieved across Britain fell over the last month in more than half of all regions.
The latest monthly letting index from Countrywide shows that rents fell year-on-year in five of the nine regions assessed during August. However, for Great Britain as a whole, average rents on new lets actually increased by 1.5% to £960 per month.
Rises in new rents were driven by growth in Greater London, the East and North of England and Scotland.
Ups and downs
While overall rents rose, the estate agency group also reports that rents dropped in central London, the South East, South West, Midlands and in Wales. This reflects a substantial rise in the supply of housing coming onto the private rental market.
Johnny Morris, research director at Countrywide, noted: ‘in London and the South East, recent increases in the number of homes available to rent, outpacing the growth in tenants looking for a home, has meant that bargaining power is shifting towards tenants from landlords. This is slowing rental growth.’[1]
‘Overall slightly more tenants are offering above asking price than last year. The majority continue to pay asking prices. Unlike the sales market rental prices adapt very quickly to changes in market conditions, meaning asking prices are finely tuned to tenant demand.’[1]
Above asking prices
The information shown below indicates the proportion of homes let above their asking price in different regions of the UK during August:
| Region | Aug-15 | Aug-16 | change |
| Greater London | 17% | 13% | -3.7% |
| Central London | 17% | 8% | -8.9% |
| East of England | 13% | 15% | 2.3% |
| South East | 14% | 14% | 0.1% |
| South West | 12% | 15% | 3.1% |
| Midlands | 10% | 11% | 0.9% |
| North | 10% | 10% | -0.3% |
| Wales | 11% | 8% | -2.7% |
GB 12% 12% 0.2%
Increased supply sees rents cool across Britain
Rental prices (per month) for New Lets
| Region | Ave Rent Aug-16 | Ave Rent Jul-16 | Ave Rent Aug-15 | August Rent YOY |
| Greater London | £1,299 | £1,280 | £1,288 | 0.9% |
| Central London | £2,434 | £2,638 | £2,484 | -2.0% |
| East of England | £977 | £963 | £912 | 7.1% |
| South East | £1,188 | £1,173 | £1,205 | -1.4% |
| South West | £862 | £856 | £853 | -1.1% |
| Midlands | £705 | £703 | £708 | -0.4% |
| North | £697 | £694 | £676 | 3.1% |
| Scotland | £726 | £689 | £696 | 4.3% |
| Wales | £669 | £671 | £672 | -0.4% |
| GB | £960 | £951 | £946 | 1.5% |
[1] https://www.landlordtoday.co.uk/breaking-news/2016/9/rents-cool-across-half-of-britain-as-supply-increases