UK rents rose in November, HomeLet’s latest data shows, but rental price inflation continued to slow across much of the country. The average rent on a new tenancy signed in November was £904 0.7 per cent higher than in the same month last year.
Last month’s increase in rents compared to a 0.9 per cent annualised rate of rental price inflation in October – and 2.8 per cent in November of last year. November was the 11th successive month in which rent rises failed to keep pace with the general rate of inflation, which currently stands at 3.1 per cent on the Consumer Prices Index measure. Average rental price growth has not exceeded inflation since December 2016, when the HomeLet Rental Index showed rents were rising at an annual rate of 1.7 per cent against a CPI reading of 1.6 per cent.
Four regions of the country did have inflation-matching or beating rent rises, with the East Midlands, Northern Ireland, and the South-West and the North-East of England all recording annual increases in excess of 3 per cent. At the other end of the scale, rents were lower in November than in the same month last year in three regions: inflation was negative in the South-East of England, the East and Greater London.
In the capital, the average tenancy signed in November cost £1,530, down from £1,556 in October. Last month’s fall in rents was the fifth month this year in which Greater London has recorded a negative rate of rental price inflation. Taking the effects of London rents out of the national picture, the annual rate of rental price inflation would have been 1.1 per cent last month, rather than 0.7 per cent.
The relatively slow pace at which rents have been rising during 2017 is in stark contrast to the first half of 2016, when rents in many parts of the UK were increasing at several times the rate of general inflation.