UK rental growth bounces back to 1.1%
Annual UK rental growth has bounced back to 1.1% in July after declining by 0.3% and 0.2% in the preceding two months, HomeLet’s Rental Index has found.
The fastest growing region is Northern Ireland (5.7%), followed by Scotland (3.6%) and the East Midlands (3.2%).
London rental growth is still negative (-0.6%), which is acting as a brake on the UK as a whole.
Indeed, excluding greater London UK rental growth stands at 1.6%.
Martin Totty, HomeLet’s chief executive, said: “It’s often been the case in recent times that rents have strengthened over the summer period.
“It’s a time when renters contemplate moving, demand increases, tenancy terms are set, and when the anniversary of the tenancy often occurs.
“This year, that ‘seasonal’ factor brings some relief for landlords, who’ve endured a gradual erosion in rent prices over many months.
“At the same stage last year, the South East was the main driver of UK average rents. This time around it’s regions throughout the country leading the strengthening in rents.”
The average rent agreed on a new tenancy signed during July was £925.
Despite bouncing back rental growth is behind inflation, which was 2.7% as of June.