UK private rental prices on the rise at last after months of flat growth
The average rent paid by new tenants in the UK property market has climbed in July after having experienced falls in May and June, showing that the rented sector may once again be returning to a healthy state.
According to the latest data released this week by HomeLet, the average paid for a new tenancy in the private rented sector in July was £925 per calendar month. This represented a rise of 1.1 per cent when compared to the same month last year, when new tenants were paying £915.
This reverses a negative trend that was experienced in May and June, when prices fell by 0.2 per cent and 0.3 per cent respectively. It had been the first time since mid-2009 that there had been a fall in the average rent price across the UK, so the rise in July will come as welcome news for landlords, who will be glad to see the market in recovery.
HomeLet’s chief executive officer, Martin Totty, said that this will serve as "respite" for landlords, although he also said that the change could be down to an imbalance in supply and demand. Fewer new rental properties coming to market means more competition between tenants, and this can lead to a substantial increase in rent in the short term.
"Whether the market has now found some equilibrium remains to be seen, but landlords at least will be grateful for even some short respite. Predicting where the market heads from here is very difficult given the number of competing forces impacting the sector," Mr Totty added.
The report also indicates that London, the one-time star of the property market, remains the area holding the rental sector as a whole back. While overall prices were up throughout July, the index shows that Greater London prices fell by 0.6 per cent, marking the fourth month in a row that the capital has experienced a fall.