Rental growth slowed to just 1% in the 12 months to February 2017 – its lowest level since April 2013, Landbay’s Rental Index has revealed.
In London they fell by 0.53% in the past year, with the likes of Kensington & Chelsea, Westminster and Camden seeing them fall by 3.50%, 2.23% and 1.79%.
However John Goodall, chief executive and founder of Landbay, reckoned this apparent reprieve for tenants was unlikely to continue.
He said: “Although this could give the impression that the market is beginning to turn a corner, this is a situation that is unlikely to change in the foreseeable future.
“Demand for rented accommodation will remain robust over the coming months and years and continue to stoke up rental values, as rising house prices, falling wages and rising inflation dampen the ability of aspiring homeowners to save for a property of their own.
“Whether tenants are renting as a stepping stone on the way to home ownership or, increasingly, renting for life, people rely on a well-served buy-to-let market to ensure rental growth doesn’t become unbearable.
“The Chancellor’s decision not to raise the stamp duty threshold in this month’s Budget was yet another blow for first time buyers, so it’s important that we now see some clear follow through to the promises made in the housing white paper to ease at least some of the pressure on Generation Rent.”