Private rental prices paid by tenants in the UK increased by 1.5% in the 12 months to June 2020, unchanged since April 2020, according to the Office for National Statistics (ONS).
Growth in private rental prices paid by tenants in the UK has generally slowed since the beginning of 2016, driven mainly by a slowdown in London over the same period.
Rental growth started to pick up since the end of 2018, driven by strengthening growth in London, but remained broadly flat since November 2019.
In the 12 months to June 2020, rental prices for the UK, excluding London, increased by 1.6%, unchanged since April 2020.
London private rental prices increased by 1.2% in the same period.
Between January 2015 and June 2020, private rental prices in the UK increased by 9.3%.
Private rental prices in Wales grew by 1.4% in the 12 months to June 2020, up from 1.2% in the 12 months to May 2020.
Rental growth in Scotland increased by 0.6% in the 12 months to June 2020, unchanged from the 12 months to May 2020.
Scotland’s rental growth has remained weaker than that of the rest of the UK since August 2016.
The annual rate of change for Northern Ireland in June 2020 (2.6%) was higher than that of the other countries of the UK.
The Northern Ireland annual growth rate has remained broadly consistent (around 2%) since 2018.
However, in recent months there has been an increase in the annual growth rate.
Focusing on the English regions, the largest annual rental price increase in the 12 months to June 2020 was in the South West (2.5%), unchanged since May 2020; this was followed by the East Midlands, at 2.3%.
The lowest annual rental price growth in the 12 months to June 2020 was in the North East (1.0%, up from 0.8% in May 2020) and the North West (1.0%, unchanged since May 2020).
Mary-Anne Bowring, group managing director at Ringley, said: “Today’s ONS figures highlight the resilience of the UK rental market, with steady rental growth across the board despite a turbulent period due to the Coronavirus pandemic.
“While the ONS stats show more subdued growth than other indices, all regions recorded positive growth throughout June.
“London in particular, recorded steady rental growth, demonstrating the robust nature of the capital’s rental market.
“For institutional investors such as pension funds and insurers looking to enter the UK rental market in search of steady income streams to match their liabilities, today’s figures are good news.
“Similarly, for buy-to-let landlords, it shows there is money to still be made in rental property, despite facing a tougher regulatory and tax environment.”