Monthly rent costs in Britain have stagnated, with the latest data showing that they were just 0.1% higher in May than in the same month a year ago.
Rents in London fell for the seventh consecutive month although at a slower rate than in April, down 1.5% compared to a fall of 3.4%, according to the figures from the Countrywide letting index.
Year on year rents were down by 4.5% in central London to an average of £2,499 and down by 1.5% in Greater London to an average of £1,273.
Rents fell by 3.5% in Scotland compared with a year ago to £683, were down by 1.4% in the South East to £1,193 and down by 0.1% in the North of England to £667.
The annual growth was led by the Midlands with a rise of 4.9% to £701, while rents also increased in the East of England by 4.6% to £1,017 and by 3.2% in the South West to £851.
Seven consecutive months of falling rents in the capital are starting to show signs of rippling out across the country with rents down in over half of regions outside London. The number of homes on the market remains well up on last years’ levels, softening rental growth,’ said Johnny Morris, research director at Countrywide.
The index report also shows that the amount spent on rent by retired people has more than tripled since 2007. Over the last 12 months people who have retired paid a total of £3.7 billion in rent, up 216% from the £1.2 billion they paid a decade ago.
The total amount of rent paid by private tenants in over the last 12 months was £50.6 billion. This increase means that £1 in every £14, or 7.3%, paid by tenants in Britain now comes from a pensioner.
In 2017 pensioners paid an average of £810 a month, up 0.3% on last year and up 19% since 2007. Yet the average retiree paid 12% less than the typical tenant, because they were more likely to rent a smaller home. Retirees also make up a greater proportion of tenants in the places where rents are lowest.
Retired people now account for 8% of all tenants compared with 5.2% in 2007. The largest proportion is in Wales where 18% of tenants are retired, followed by the South West with 13% and the North East with 10.1%. London has the fewest at 3.5%.
‘The rental market can no longer be typified by the image of carefree, young professionals. More than half of tenants are over 30 and the number of pensioners renting has reached record levels. And with younger generations growing up much less likely to be home owners, tenants are getting older with an ever more diverse group of people calling the rented sector home,’ added Morris.
