Private residential rental prices paid by tenants in the UK increased by 1.3 per cent in the 12 months to September 2019, according to the latest Index of Private Housing Rental Prices (IPHRP) released by Office for National Statistics (ONS).
Growth in private rental prices paid by tenants in the UK generally slowed down since the beginning of 2016, driven mainly by a slowdown in London over the same period. Uncertainty over Brexit also contributed to moderate growth in rental prices. But rental growth picked pace since the end of 2018, driven by strengthening growth in London.
London’s rental prices have been consistently growing owing to demand. London private rental prices increased by 0.9 per cent in the 12 months to September 2019. “The Royal Institution of Chartered Surveyors (RICS) reported in their latest Residential Market Survey that tenant demand has shown a sustained recovery in London, increasingly outstripping supply. These effects may be now starting to feed through to the IPHRP,” ONS reported.
In England, private rental prices grew by 1.3 per cent in the 12 months to September 2019, unchanged from August 2019. When London is excluded from England, privately rented properties increased by 1.5 per cent in the 12 months to September 2019.
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Focusing on the English regions, the largest annual rental price increase was in the South West (2.1%), up from 2.0% in August 2019 (Figure 5). This was followed by Yorkshire and The Humber (1.8%), the East Midlands (1.7%) and the South East (1.6%).