It’s official - private rents are FALLING in real terms

Data published by the Office for National Statistics shows private rental prices paid by tenants in the UK rising by 1.3 per cent in the 12 months to July - unchanged since May.

In London rents rose by 0.9 per cent in the 12 months to July, also unchanged since May. 

However, over the same period inflation was 2.1 per cent as measured by the Consumer Price Index and 2.8 per cent as measured by the Retail Price Index.

Responding to the figures, Residential Landlords Association policy director David Smith says: “The figures show that the market is working. It demonstrates clearly that introducing rent controls linked to inflation, as called for by some, would leave tenants worse off as rents would rise faster than they currently are.

“Welcome though the news is, rising demand for and falling supply of homes for private rent risks considerable increases in rents which will only hurt tenants. 

“It is vital that the government stops blaming landlords for the housing crisis and introduces positive, pro-growth measures, to support the majority of landlords who do a good job in providing the homes to rent the country desperately needs. All the talk of longer tenancies will mean nothing if the homes to rent are not there in the first place.”

According to the latest figures from the Royal Institution of Chartered Surveyors, a fall in the supply of private rented housing whilst demand from prospective tenants increases is “likely to squeeze rents higher.” 

Tenant demand has picked up despite recent government efforts to boost homeownership and RICS notes that many respondents to its latest residential market survey saw a rise in the number of enquiries from new home buyers in July.