Private rents elevated by 5.9% to a mean of £1,343 a month, within the 12 months to July, the Office for National Statistics reveals.
The newest determine represents a lower from the 6.7% within the 12 months to June.
This morning, the ONS reported that UK inflation had risen to three.8% within the 12 months to July, up from 3.6% in June.
Across the nation, common rents elevated by 6.7% to £1,398 in England, by 7.9% to £807 in Wales, and by 3.6% to £999 in Scotland, within the 12 months to July.
In Northern Ireland, common rents lifted by 7.4% to £855 within the 12 months to May.
In England, non-public rents annual inflation was highest within the North East at 8.9% and lowest in Yorkshire and The Humber at 3.5%, within the 12 months to June.
The North East continued to have the best lease annual inflation charge of all English areas, at 8.9%, within the 12 months to July.
This annual rise was decrease than the joint record-high within the 12 months to June at 9.7%.
Rent annual inflation remained lowest in Yorkshire and The Humber, at 3.5%, within the 12 months to July.
This annual rise remained unchanged from within the 12 months to June, following a 12 months of slowing annual inflation.
London’s annual inflation was 6.3% within the 12 months to July, down from 7.3% within the 12 months to June. This was the eighth consecutive month of slowing annual inflation.
Average lease was highest in London at £2,250 and lowest within the North East at £736 in July.
Commenting on the newest figures, Foxton managing director of lettings Gareth Atkins says: “The London lettings market remained pink scorching in July. Despite a modest uptick in provide, applicant demand surged by 25% month-on-month, leading to over 18 candidates per obtainable property.”
“This sustained strain has pushed rental costs upward in keeping with seasonal developments, and we count on this momentum to proceed for the remainder of the summer season.”
Paragon Bank managing director of mortgages Louisa Sedgewick provides: “Continued moderation of personal rental development is a optimistic signal however month-to-month funds stay at a stage that can stretch many tenants.”
“This is as a result of lease inflation has swelled considerably from 1.0% within the first quarter of 2021 to a document excessive of 9.0% seen on the finish of 2024. This correlates with elevated demand seen because the pandemic.”
“It is essential then that offer matches demand, one thing that can persist, fuelled by a spread of things together with extra individuals dwelling alone or coming into larger training, along with projected inhabitants development, extra broadly.”
“In order to extend PRS inventory and gradual lease inflation, funding have to be financially viable and guarded by balanced regulation that considers landlords’ pursuits in addition to tenant rights.”
“Lenders and our trade companions may help by offering a spread of finance merchandise to satisfy landlord wants, however policymakers even have an vital half to play if we’re to see a good and functioning PRS.”
Meanwhile, Hampshire Trust Bank managing director of specialist mortgages and bridging finance Alex Upton provides: “Rents are nonetheless edging upwards, however there are indicators that tenant demand has eased barely over the summer season.”
“Propertymark’s newest Housing Insight report exhibits new tenant registrations in June fell to their lowest stage in years, and the supply-demand imbalance has softened. There are actually six candidates per property on common, in comparison with almost ten at factors final 12 months.”
“Even so, a modest slowdown doesn’t change the underlying image. We are nonetheless considerably wanting the rental inventory wanted to satisfy demand, and that structural hole will preserve upward strain on rents for the foreseeable future.”
