Rents in almost every part of the UK are continuing to rise, new research from HomeLet reveals, but at a slower rate than in previous months – markedly slower than a year ago. The easing in the rental market during May mirrors a similar slowing in the pace of house price rises.

Rents agreed on new tenancies across the UK (ex London) over three months to the end of May rose 4.4 per cent on the same period a year ago according to the May HomeLet Rental Index; down on the 5.1 per cent registered over the three months to the end of April – and significantly slower than the 7.6 per cent annual increases in the three months to the end of May 2016.

However, rents rose in 11 of 12 regions over the three months to May – and regions such as Scotland and the East Midlands saw increases well above the national average. However, the slower pace  of appreciation is notable – and in line with the other side of the housing market, where recent research from Nationwide suggested house prices rose at a much slower rate in April and May.

HomeLet has seen a noticeable increase in applications for new tenancies following a rush by landlords to complete purchases of buy-to-let properties before 6th April, when higher rates of stamp duty came into effect.

The slowdown may also reflect broader economic conditions, with uncertainty to the fore as the UK prepares to go to the polls in this month’s European Union referendum. This is certainly likely to be part of the explanation for slowing house price growth.

Overall, however, the outlook for the rental sector is one of further increases in rents over the longer term. While shortterm factors will continue to have an impact on the sector, they do so against a backdrop of an imbalance in supply and demand, with drivers such as population growth ensuring large numbers of people are looking for rental property. So far, attempts to boost the supply of rental property, whether by public or private sector, have been unable to keep up with that demand.