Rental growth hits an eight-month high but are tenants actually better off than ten years ago?

11/16/2018

Rental growth last month hit its highest level since February, according to data from Countrywide firms.

The agency's figures, sourced by its Hamptons International brand, suggest rents on new lets were up 2% annually in October to £977 per month.

This is the highest rate of growth since February, with each region seeing a rise.

However, today's tenants are better off than those a decade ago, Hamptons International's data also suggests.

It claims that rents have fallen in real terms compared with October 2008 when adjusted for ten years of inflation.

Rents have risen 22% over the past decade, but inflation has risen 24% over the same period.

The east of England and London were the only regions across the UK where rental growth has outpaced inflation.

Aneisha Beveridge, head of research at Hamptons International, said: "Real rents in Great Britain have been falling for the last 21 consecutive months.

"This comes as a result of sluggish rental growth and a post-EU referendum backdrop of rising inflation.

"However, this could be set to change as inflation begins to fade and rental growth starts to pick up pace. Currently the east and London are the only regions where real rents have risen over the last decade.

"Rental growth accelerated to 2% in October, the highest level since February. Every region recorded higher rents, with the east leading the way. Rental growth in London also picked up, driven by a 2.7% annual rise in inner London rents."

Region

Oct-18

Oct-17

YoY


East of England

£ 965

£ 929

3.9%


Greater London

£ 1,714

£ 1,690

1.4%


Outer London

£ 1,543

£ 1,528

1.0%


Inner London

£ 2,614

£ 2,545

2.7%


Midlands

£ 687

£ 677

1.4%


North

£ 648

£ 635

1.9%


Scotland

£ 660

£ 653

1.1%


South East England

£ 1,049

£ 1,020

2.8%


South West England

£ 808

£ 791

2.2%


Wales

£ 671

£ 658

2.0%


Yorkshire and the Humber

£ 679

£ 668

1.6%


Great Britain

£ 977

£ 958

2.0%