Private rents paid by tenants in the UK increased by 1.3% in the 12 months to July 2019 and is unchanged since May 2019, according to the latest figures published by the Office for National Statistics (ONS).
In London they rose by 0.9% in the 12 months to July 2019 and are unchanged since May 2019.
But the official figures published yesterday reveal that private rents are dropping in real terms.
Over the corresponding 12 month period, inflation was 2.1% as measured by CPI and 2.8% as measured by RPI.
David Smith, policy director for the Residential Landlords Association, commented: “The figures show that the market is working. It demonstrates clearly that introducing rent controls linked to inflation, as called for by some, would leave tenants worse off as rents would rise faster than they currently are.
“Welcome though the news is rising demand for and falling supply of homes for private rent risks considerable increases in rents which will only hurt tenants. It is vital that the government stops blaming landlords for the housing crisis and introduces positive, pro-growth measures, to support the majority of landlords who do a good job in providing the homes to rent the country desperately needs.
“All the talk of longer tenancies will mean nothing if the homes to rent are not there in the first place.”
According to the latest data from the Royal Institution of Chartered Surveyors (RICS), a fall in the supply of private rented housing whilst demand from prospective tenants increases is “likely to squeeze rents higher”.
Tenant demand has picked up despite the government’s efforts to boost homeownership and RICS notes that many respondents to its latest residential market survey saw a rise in the number of enquiries from new home buyers in July.