Tenants Paying More Rent, but Rate of Rising Slows
The cost of renting a private home is rising, but the rate of increase is slowing, according to official statistics.
To the end of October 2017, buy-to-let and shared house rents rose by 1.5% - down from 1.6% in September.
Private rents in England and Wales both went up by 1.5%, but those in Scotland only increased by 0.4%. London is also lagging behind the rest of England, with rents rising by 0.8%.
The Office of National Statistics figures shows a trend of slowing rent rises since the end of 2015.
The 1.5% average increase means a private tenant paying £500 a month rent in October 2016 now pays £507.50.
“This slowdown in the growth in private rental prices in Great Britain is mainly driven by a slowdown in London over the same period,” said the ONS report.
“Rental prices for Great Britain excluding London increased by 1.9% in the 12 months to October 2017, unchanged from September 2017. The 0.8% growth rate for London in the 12 months to October 2017 was 0.7% below that of Great Britain.”
Since January 2011, private rents have jumped by 15.3%, explained the report, pushed along by strong growth in London.
“When London is excluded from these figures, private rental prices increased by 11.4% over the same period,” said the ONS.
The highest rent increase was 2.9% in the East Midlands, unchanged from September.
The lowest was in the North, where the North East added just 0.2%, down from 0.4% in September, while the North West was unchanged at a 1.3% increase.
Rents in Wales have seen the fastest growth since 2011, the last time the annual rate of change hit 1.5% in the country.
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Investing in a private rented property can be achieved in a variety of ways. Sometimes landlords inherit a property that they then turn over to renting. Sometimes owners of properties become unintentional landlords because they are unable or unwilling to sell a property at the value the market currently dictates.