Annual rental growth in the UK is slowing

The average rent in the UK increased by 1.6% in the 12 months to May 2019 to £934 but growth is starting to slow across the country, the latest rental index figures show.

When London is excluded, the average rent in the UK is now £776, up by 1.7% on last year, while average rents in London are now £1,602, up by 1% year on year, according to the HomeLet data.

Of the 12 regions monitored by the index, all except Yorkshire and Humberside and the North East showed an increase in rental values between May 2018 and May 2019.

The biggest annual rise was 4.9% in Northern Ireland, followed by 3.7% in the East Midlands, 2.9% in the South West, 2.2% in the West Midlands, 2.1% in the South East and 1.9% in the North West.

Rents also increased in Wales, up by 1.5%, while there was a rise of 0.5% in Scotland and in the East of England. But rents fell by 0.2% in Yorkshire and Humberside.

On a monthly basis rents fell by 0.2% across the UK. The biggest decline was a fall of 1.5% in Scotland while rents also fell by 0.9% month on month in London and the West Midlands. They were down 0.2% in Yorkshire and Humberside and the South East.

Month on month rents increased the most in Northern Ireland with a rise of 4.1%, were up by 0.8% in the East Midlands, by 0.5% in Wales, by 0.4% in the South West, by 0.2% in the East of England and were unchanged in the North West.

In London rents increased year on year the most in Westminster with a rise of 10.7%, followed by Enfield up 6.3%, Wandsworth up 4.4%, Hounslow and Richmond upon Thames up 3.9% and Haringey and Islington up 3.8%.

The biggest drop in rents on an annual basis in London was a fall of 6.8% in Camden and the City, followed by Ealing down 5.9%, Kingston upon Thames, Merton and Sutton down by 5.5%, Brent down 3.3% and Tower Hamlets down 2.6%.

The highest rents in London are £2,465 in Westminster, followed by £2,073 in Camden, and £2,030 in Lambeth. The cheapest are 1,063 in Croydon, £1,244 in Barking, Dagenham and Havering and £1,250 in Kingston upon Thames, Merton and Sutton.