Rent rises stall – but with big regional disparities

The average rent rise in the UK has stalled but regional disparities show that some areas are seeing double-digit rises, research reveals.

The data from Home.co.uk show that while the national average rise is at a standstill 0% landlords in Wales and the North East saw rent growth of 15.1% and 12% year-on-year respectively.

However, asking rents in London are now in decline as Greater London rents dip by 3.6% year-on-year.

The borough of Haringey leads the capital’s decline with a 14% drop.

Home.co.uk says this rent correction ‘may persist well into next year’ – after a period of rapid rent increases in the capital.

‘RRB will not improve the lives of tenants’

Doug Shephard, a director at Home.co.uk, said: “The Renters’ Rights Bill will not improve the lives of tenants; more likely, it will worsen their plight.

“It is in fact an attack on landlords’ fundamental property rights and therefore an attack on the entire UK property market.”

He adds: “Another big issue for landlords is the notion that the legislation states they can’t act on rent arrears before three months are up.

“During this period a landlord could easily slide into financial difficulty.

“They then find that they can’t evict the tenant for non-payment before they themselves become bankrupt.”

Landlords downsize portfolios

A contributing factor to London’s rental shift is a drop in available properties as landlords, particularly in the capital, are downsizing their portfolios.

The data shows that despite a 25% increase in rental listings compared to last year, the total stock remains significantly lower than pre-pandemic levels – down 21% from October 2019.

Home.co.uk says that incentives are now needed to encourage landlords to stay in the market and increase the supply of quality rental properties.

The current shortage creates a challenging environment for renters, forcing them to grapple with high rents and limited options.

House prices continue rising

The platform also reveals that house prices in England and Wales continued their modest upward trajectory in October, buoyed by growing market confidence.

Asking prices rose by 0.3% last month, bringing the annual increase to 1.7% compared to October 2023.

While this marks a two-year high, the average price remains below its peak in July 2022.

Scotland and Wales, along with all English regions except the North East, reported month-on-month price increases.

The number of new properties entering the market in September was 4% higher than the previous year and 12% higher than in 2019.

However, the unsold sales stock count reached its highest level since November 2014, with nearly 9,000 new properties added to agents’ portfolios.

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