Lettings market slowing but average rent still up by 8.5% in a year

After six months of annual rent price rises of 10 per cent plus the latest HomeLet index shows rent prices have slowed to an average annual rise of 8.5 per cent across the UK. 

Nine out of 12 UK regions are still seeing rent prices rise on an annual basis with the largest increases seen in Scotland at 8.4 per cent, the East Midlands at 7.7 per cent and Greater London at 6.6 per cent. 

But rents are down in three areas - in the North West they are 4.6 per cent lower than a year ago, 2.2 per cent lower in East Anglia and 1.4 per cent lower in Northern Ireland.

Only three regions have seen rent prices rise since August. In the three months to September 2015 only Scotland, the East Midlands and West Midlands have seen prices rise – by 1.2 per cent, 1.4 per cent and 1.4 per cent respectively.

Every other region of the UK has seen rent prices fall modestly in the three months to September 2015, with the largest price reductions seen in the South West, the North East and North West at -2.4 per cent, -2.3 per cent and -2.2 per cent respectively.  

“Affordability is an important factor in determining rents. Depending on what happens with inflation and real incomes over the coming months, could have a bearing on future rental price trends” says Martin Totty, chief executive of Barbon Insurance Group which operates the HomeLet index.