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Rental price growth across the UK property market starting to slow

Posted on October 10, 2016 by Isak Botma in Property News
Rental price growth across the UK property market starting to slow

Rental price growth across the UK property market starting to slow

The price of rental property has been climbing repeatedly for some time now, with the demand from tenants and the relative lack of stock meaning that there is a continued upward pressure on the price people pay.

However, according to the latest reports, this is changing to an extent, with the price that tenants pay still growing, but slower than it has been in the past.

The newly published Landbay Rental Index shows that the average cost of renting a property climbed by 0.9 per cent in September this year.

While this is still good news for landlords operating in the PRS, it’s also a strong reading for tenants. The figure for growth in September was slightly lower than the 0.12 per cent growth seen in August, which shows a slight slowing in increases.

Overall, this has taken the average rental price across the UK to around £1,100 per calendar month, which means that over the course of the last 12 months as a whole, the price of rent has climbed by around 1.65 per cent, Landbay said.

When London is excluded, the average rental price nationwide now stands at £797 per calendar month, with tenants in the capital still having to spend more than £1,800 per month for the properties they choose to rent.

John Goodall, chief executive officer of Landbay, said: “Housing has been high on the political agenda this week, and it seems that policy makers are resolute in their ambitions to make home ownership more affordable for people across the UK. There’s no denying most people aspire to own their own home, but it’s critical that efforts to bolster the country’s housing stock don’t overlook the importance of the buy-to-let market for a supportive and sustainable housing market.”

He also said that while the government wants to make sure that there’s a chance for people to buy homes, the majority of people will still need to rent at some point along the way, so it’s vital that the rental market is also protected.