Private rental prices maintained their growth momentum in London, registering an annual increase of 0.8 per cent in August 2019, according to the Index of Private Housing Rental Prices, released by the Office for National Statistics (ONS).
Quoting the latest Residential Market Survey from the Royal Institution of Chartered Surveyors, ONS report observed that tenant demand had staged a sustained recovery in London, increasingly outstripping supply. “These effects may be now starting to feed through to the Index of Private Housing Rental Prices,” said ONS, which expected the growth momentum to continue for the rest of the year.
Growth in private rental prices paid by tenants in the UK generally slowed since the beginning of 2016, driven mainly by a slowdown in London over the same period. But rental growth has started to pick since the end of 2018, driven by strengthening growth in London.
In England, private rental prices grew by 1.3 per cent in the 12 months to August 2019. When London is excluded from England, privately rented properties increased by 1.5 per cent in the 12 months to August 2019. Private rental prices paid by tenants in the UK was the same as that of England at 1.3 per cent annually.
Index of Private Housing Rental Prices from ONS reflects the rental market trends. It measures the change in the price tenants face when renting residential property from private landlords. This allows a comparison between the prices tenants are charged in the current month as opposed to the same month in the previous year.
London private rental prices rose by 0.8% in the 12 months to August 2019: ONS