• Eight regions of the UK saw rental price falls during September 2014, while four saw increases
• Average monthly private rents in the UK (excluding London) now £728
• Average monthly private rent in London now £1,466
Rental price growth across the UK continued to ease in September, with twice as many regions in the UK seeing rental price falls than those recording an increase in rental prices, according to new findings released today from the September 2014 HomeLet Rental Index.
This month’s data from the HomeLet Rental Index, the largest monthly survey of private tenants in the UK, has shown a modest cooling in the rental market for the second month in a row, with UK regions such as Greater London, the South East, South West and East Anglia, that have recently reported large month on month price increases, moving to slower growth and a greater proportion of regions reporting negative price movement.
In September, eight regions recorded rental price falls and only four regions recorded rental price growth; Greater London at 0.1%, the West Midlands at 1.2%, the South West at 2% and Northern Ireland at 4.2%. This is 50% fewer than the number of regions reporting growth in August where six regions delivered rental price growth and six recorded falls.
While the annual data still points to a rental market averaging largely positive growth, this month’s data has shown the number of UK regions recording annual negative rental growth doubling from two to four. Scotland, Wales, the North East of England and the East Midlands now show rental prices are lower now than a year ago.
Commenting on the report, Martin Totty, Barbon Insurance Group’s Chief Executive Officer, said:
“There can be an element of ‘seasonality’ to the rental market with September often recording marginally lower average prices than other months, perhaps due to the number of student letting agreements being signed at this time of year. However, with this month’s data being the second consecutive month of slower rental price growth, and house prices indices indicating a slowing of house price growth, which could suggest movement to a period of more settled rental prices, even in previously booming markets such as London and the South East.”
Rental figures from the September 2014 HomeLet Rental Index