Tenants in the UK property market’s private rented sector are enjoying a period of no rent rises, according to the latest data, which shows that prices charged by landlords have been largely flat for the past three months.
However, the good news for the sector as a whole is that the official Office for National Statistics (ONS) data shows that prices are still growing on an annual basis, suggesting that overall, the market remains strong. This is despite the political uncertainty that has plagued property for the last year, and seen many investors wait to see how things play out.
According to the ONS figures, in June, prices in the rental market have remained flat when compared to May, which means that there has been no growth at all in the last quarter. However, over the course of the year, prices have still gone up by an average of 1.8 per cent, with England’s market leading the way.
In England, annual price rises have sat at 1.9 per cent on average, while Wales saw prices paid by tenants climbing by 1.1 per cent, and in Scotland, they were up by just 0.2 per cent.
As well as looking at monthly and annual data, however, the study from the ONS also compares the market now to what it was before the rental market boom in the early part of this decade. It was then that more people started to invest in buy-to-let homes as demand from tenants began to rise, and there has been a significant change in the sector ever since.
The data shows that between January 2011 and June 2017, the average price rise across the nation for rental property amounts to 14.8 per cent. This is largely due to the extra competition between tenants that has come into the sector as demand rises, and gradually outpaces supply of rental stock nationwide.
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