Date Published 03 June 2024
Landlords have seen some big rises in rent over the last few years, however signs are showing that rental prices are slowing down. Average private rents in the UK increased by 8.9% in the last 12 months which is down from 9.2% in the previous month. This means on average tenants are still paying £103 more every month than they were a year ago. Rent rises are both higher than inflation and wage increases.
The sales side was different in the UK where the average annual inflation was 1.8% in the 12 months to March 2024. This is better than the 0.2% drop in the 12 months to February 2024. The 1.8% increase meant that the average UK house price was £283,000 which is higher than 12 months ago.
In England, the private rental sector is utilised by approximately 4.6 million households, accommodating a total of 11 million renters. This sector has emerged as the second largest housing tenure in the country, trailing only behind owner occupiers, and constituting roughly one-fifth of all households in England.
Over the course of the last 12 months leading to April 2024, the average monthly rents in England rose to £1,293, while in Wales they reached £730, and in Scotland they stood at £952. However, it is noteworthy that renters in London experienced the most significant surge in rental prices across the UK, with a staggering 10.8% increase compared to 2023, resulting in an average rental cost of £2,070.
Commenting on the latest figures Propertymark chief executive Nathan Emerson said: 'The housing market is a key indicator regarding wider economic health, and it is extremely positive to see further uplift and confidence within the housing sector. As inflation tracks downwards, it is widely anticipated the Bank of England will consider a reduction in its base rate and at this point we hope to see lenders offering a much wider range of competitive and highly targeted deals."
At Adams Estates we have also experienced a slower rate of increase over the past couple of months. With tenants renewing at their current tenancies and not looking to move out, this is creating less enquiries meaning Landlords have had to reduce their rent slightly to get more interest.
