Annual rental growth slowed to 2.1% in September – down from 2.4% in August, HomeLet’s Rental Index has found.
On a monthly basis rents fell by -1.3%.
Despite the slowdown Martin Totty, HomeLet’s chief executive officer, claimed the data signals an upward trend in rents.
He said: “In a sector where demand for rental properties generally outstrips supply, most informed commentators suggest higher externally imposed costs on landlords will inevitably translate into higher rents to tenants.
“This may prove to be the start of that upward movement, especially if tenants are left competing for fewer rental properties because some landlords decide the returns from property investment are being eroded by factors beyond their control.”
Areas with the highest annual rental growth are Northern Ireland (4.3%), West Midlands (3.9%), East Midlands (3.7%) and South West (3.4%).
In London annual rental growth stands at 1.9%, while South East rents have fallen by -0.1%; the only area where they have declined across the UK.