Slowest growth in rents in 3 years according to the latest rental index
The average monthly cost to rent a property in the UK has risen 1.2% over the last 12 months to Janaury and cost now £906 per month on average according the Countrywide monthly rental index and over 12% higher than the pre-recession peak in 2007.
London rents have grown 34% since 2007 from £966 to £1295 the biggest increase anywhere in the country when incomes in London have only grown 10%. Elsewhere in the UK rents have risen inline with wages, with wages also rising 12% over the same period.
‘Nationally rents in January rose at the slowest rate since 2012, as some of the upward pressure on prices subsided and affordability limited further rises. Across most of London and the South East the slowdown in rental growth is the first since 2010, where rents have been growing for the past six years,’ said Johnny Morris, research director at Countrywide .
‘The most sustainable way of creating a more affordable rental market in London and the South is by building more homes of every tenure. Unlike in the US where institutional investors build homes to rent, in the UK the sector is dominated by small landlords meaning the link between new homes getting built and the rental market isn’t nearly as close as it should be,’ he added.