The common month-to-month private rent got here to £1,344 in June, indicating a 6.7% rise over the yr, information from the federal government confirmed.
According to the Office for National Statistics (ONS), this development was slowed down from the 7% improve seen in May. This was the sixth month in a row that annual rental inflation had eased.
The most vital rise was in Wales, with an 8.2% improve to £804 per 30 days.
In England, common rents rose by 6.7% to £1,399, and in Scotland, there was a 4.4% elevate to £999.
With information solely out there up till April, the ONS discovered that common rents in Northern Ireland elevated by 7.6% to £852 year-on-year.
Rental inflation slowing throughout all areas
In England, the yearly rise in common rents was decrease than the 7.1% improve recorded in May and represented the seventh month that inflation had slowed.
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This was additionally the case in Wales, the place annual inflation was down in comparison with May’s 8.5% determine. In Scotland, the ONS stated yearly development had been easing because the document excessive of 11.7% recorded in August 2023, and June’s development was the bottom annual rise for 3 years.
Rental inflation was additionally down in Northern Ireland, and this has been slowing since April final yr, when it reached a document excessive of 9.9%.
Rents are nonetheless growing shortly
Louisa Sedgwick, managing director of mortgages at Paragon Bank, stated: “The cooling of rent inflation is a step in the best path, however at 0.3% proportion factors, it’s a small step and comes from the document excessive recorded final yr.
“This implies that rents are nonetheless growing at a quicker fee than they have been earlier than the pandemic, pushed by the continued imbalance between provide and demand for rental properties. Over the long run, projected demographic modifications and inhabitants development [are] prone to propel demand for rented properties.
“Creating the situations to allow landlords to take a position and improve the availability of PRS properties to satisfy this demand will assist to restrict rent inflation, making renting extra reasonably priced for tenants and supply them with a larger selection of locations to reside.”
Nathan Emerson, CEO of Propertymark, stated: “Investors in the private rental market have been deterred from investing in this important housing market due to tax and regulatory modifications during the last 10 years, and now current experiences recommend that they’ve been deterred additional by stamp obligation will increase on second properties.
“Britain wants a steady and thriving private rental market to offer option to individuals who intend to place a roof over their heads. New laws, particularly in each England and Scotland, is including extra uncertainty to aspiring traders and finally elevating rent prices in the long run, making a myriad of unintended penalties. It is significant that the UK authorities and the devolved administrations hearken to these working in the lettings market to make sure that the private rental sector works higher for everybody.”
North East the strongest for rental worth development
The North East continued to be the English area with the best annual rent inflation, with a joint document excessive of 9.7% to £734 per 30 days. This was unchanged from the earlier month.
Despite this development, private rent in the North East was the bottom in England.
The smallest inflation was in Yorkshire and the Humber, at 3.5%. This was a decrease fee of development than the three.7% recorded in May and marked a yr of slowing annual rent inflation.
Average rents in London rose by 7.3%, down from 7.7% in the 12 months to May. This was the seventh month of slowing inflation, however at a mean worth of £2,252, the capital remained the most costly area in which to rent.
Detached properties attracted the best month-to-month private rent of all property varieties, at £1,533, whereas flats and maisonettes have been the bottom at £1,318.
The common rent for properties with 4 or extra bedrooms was the best, averaging £2,077 per 30 days, and lowest for properties with one bed room, at £1,091.
