Buy to let rents across Britain are stagnating with little upward movement, says the latest official data.
Private renters in buy to let or shared houses saw their payments to landlords rise by just 0.9% in the year to the end of July 2018, according to the Office of National Statistics.
The figure is slightly down on the 1% year on year increase to the end of June. The data to the end of July shows buy to let rents are rising slightly faster in Wales, where they increased by 1%. In England, the hike was 0.9% and in Scotland 0.5%. But in London, rents dropped by 0.3%, the most significant annual change since September 2010.
“Growth in private rental prices paid by tenants in Great Britain has slowed since the end of 2015,” said the latest ONS Index of Private Housing Rental Prices.
“For example, a property that was rented for £500 a month in July 2017, which saw its rent increase by the average rate would be rented for £504.50 in July 2018. This slowdown in the growth in private rental prices is driven mainly by a slowdown in London over the same period.”
Looking over a wider period, UK rents showed a 16% increase between January 2011 and July 2018. A healthy rental market in London was the main driving force for the surge in rents, explained the ONS. But when London data is stripped from the index, tenants across the rest of the UK saw their rents rise by 12.6%. In July, the highest annual rent rise was seen in the East Midlands at 2.7%, even though this fell from 2.8% the previous month.
The other best performing regions were the South West, which reported a 1.9% increase – down from 2.1% in June – and the East, posting 1.8% compared with 1.9% in June. Outside London, the poorest performing region was the North East, up just 0.1% against 0.2% in June.