Private rental prices paid by tenants in the UK are gradually increasing, especially in England, according to the latest Index of Private Housing Rental Prices (IPHRP) published by Office for National Statistics (ONS).
Private rental prices paid by tenants in the UK rose by 1.3 per cent in the 12 months to May 2019. London private rental prices also increased by 0.9 per cent in the 12 months to May 2019, indicating stability in the private rental market.
The (IPHRP) measures the change in the price tenants face when renting residential property from private landlords. It is one of the lead indicators of the UK rental market.
Growth in private rental prices paid by tenants in the UK has generally slowed since the beginning of 2016, driven mainly by a slowdown in London over the same period. This has been attributed to Brexit and its impact on the housing sector. However, rental growth started to pick since the end of 2018, driven by strengthening growth in London.
If London is excluded, then rental prices for the UK increased by 1.5 per cent in the 12 months to May 2019. Though house price growth was impacted significantly by Brexit, the private rental market, however, remained stable. Focusing on the long-term trend, between January 2015 and May 2019, private rental prices increased by 7.6 per cent in the UK.
Private rental prices paid by tenants in the UK rose by 1.3% in the 12 months to May 2019, up from 1.2% in April 2019.