UK rental price growth slows but still over 10% higher than a year ago
Rent price rises slowed in every region of the UK over the three months to August 2015 compared to the previous three months, the latest lettings index shows, but they are still rising at double figures rates on an annual basis and are now 10.5% higher than a year ago, according to the finding from the HomeLet rental index.
The data shows that across the country the average tenancy signed during the three month period was £992 per month.
The index report also points out that the trend is particularly marked in areas where rents have been rising exceptionally quickly this year, notably the South East of England and East Anglia.
Nevertheless, on an annual basis, rent prices remain significantly higher than a year ago, with the average UK rent 10.5% higher than in the three months to August 2014.
Whilst there needs to a realistic affordability balancing act rent increases are not a surprise. The need for new houses has been well documented for many years and the changing face of house ownership here in the UK is naturally going to feed the need for rental properties. Demand and short supply will obviously increase rental prices. This of course does support the buy to let property market and the need for more landlords and investors taking advantage of the return on investment in this growth market.