Rental prices paid by private tenants in the UK increased by 1.8% in the year to June 2017, according to the most recent figures from the Office for National Statistics (ONS).
This was the third consecutive month that rents increased by this figure, led by growth in England, where rental prices increased by 1.9%. Wales saw growth of 1.1% and Scotland saw rises of 0.2% over the same period.
Increases
Between January 2011 and June 2017, private rental prices in the UK increased by 14.8%, driven by price increases in London. However, when the capital is excluded from the data, rental prices actually rose by 10.8% over the year.
Despite historical growth in prices within London, private rental prices here rose by 1.3% in the year to June 2017. This was 0.5% less than the national 12-month rate of growth.
UK rents rose by 1.8% in year to June, says ONS
Pressure
John Goodall, CEO and co-founder of buy-to-let specialist lender Landbay, stated: ‘While the pace of house price growth may have slowed, house prices still continue to rise, ultimately meaning that fewer people can afford to buy, which can only place greater pressure on the UK’s rental sector. For that reason it’s essential that new construction is planned across all tenures, so that rents don’t escalate to the point where they’re inhibiting aspiring homeowners’ ability to save for a deposit.’[1]
‘Quite simply, we need to build more purpose built rental homes to support those hoping to take their first steps onto the property ladder,’ Goodall went on to observe.[1]
[1] https://www.landlordtoday.co.uk/breaking-news/2017/7/uk-rents-increase-by-1-8-says-ons
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