|"The number of rental homes in the country had risen by 25% compared to last year."|
Change of Pace
Rents are on the rise but increasing stock levels have kept them in check.
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Rents in the UK are rising at a slower rate than they were last year. The average UK monthly rent rose to £931 in March, a 3.4 per cent year on year increase compared to the 4.5 per cent rise seen last year. The overall slowdown was due to slowing growth in the South as rents continue to grow faster in the North.
The highest increase in rents was seen in the East where rents rose by 8.5 per cent. However, this was still 0.1 per cent slower than in 2015. All of the southern markets saw their rents rise more slowly in the first quarter of the year; in London rental growth was 4 per cent slower, the South East, 3 per cent slower and in the South West 0.1 per cent slower.
Ample landlord activity in the first quarter of the year has meant a significant increase in the number of homes available to rent. By the end of March, the number of rental homes in the country had risen by 25 per cent compared to last year. The increased supply was concentrated in London, the South West and the East where the number of rental homes grew by 35 per cent, 32 per cent and 51 per cent respectively.
However, this has not been matched by a corresponding rise in the number of tenants looking for homes and has served to keep a lid on how quickly rents can rise. The number of tenants looking for new homes has only increased by 14 per cent in the first 3 months of the year, from last year. In London & the South West, particularly, tenant demand has grown at a much slower rate with tenant numbers up by only 9 per cent and 5 per cent compared to last year.
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