UK rental growth has slowed down to a +0.2 percent increase from April to May but industry experts have warned that it is still “business as usual” for the Private Rented Sector as demand is “out of control” and renting is “unaffordable” for many.
This rental growth is a significant drop from the 1.6 percent in April, according to this month’s HomeLet Rental Index.
The annual rental growth fell down to +6.9 percent, the lowest rate of growth since August 2021.
Rents decreased in the North East (-1.6 percent), South West (-1.4 percent), Greater London (-1.3 percent), and Yorkshire and Humberside (-0.5 percent).
HomeLet’s experts warn that it is far too early to talk of positive changes all of a sudden, especially against the background of General Election 2024 and an all-time high UK average rent of £1,297 per month.
HomeLet and Let Alliance CEO, Andy Halstead, said: “As summer approaches it looks like business as usual in the private rental sector: Shortage of supply, demand out of control, and high rents that are, in many instances, unaffordable.
“Meanwhile, the politicians focus on attempting to win votes with blatant untruths. This government has not supported our sector and I suspect the next government will be equally unhelpful.
“Professional letting agents make the best of a difficult situation. However, it is no wonder we are seeing record levels of letting agent consolidation, and landlords considering alternative investment options.”
Research from HomeLet found that if London is excluded then the average UK renting falls by £200 to just £1,093. This is 0.8 percent higher than last year up to £1,084 PCM.
Conversely the average rent for people in London is a staggering £2,138 PCM. Average rents fell in 11 out of 21 London areas in May with three areas also reporting falls on an annual basis.
The cheapest region in England, the North East with an average rent of £688 PCM, saw a price decrease of -1.6 percent since April 2024. This is 8.9 percent higher than May 2023.
Northern Ireland saw the largest month on month increase of 3.2 percent from April 2024.
