Rents rose 1.4 per cent in the year to October, a drop from the 1.5 per cent growth recorded in September according to the Office for National Statistics.
Split by nations, rents grew by 1.4 per cent in England, 1.6 per cent in Wales and 0.8 per cent in Scotland.
London rental growth slowed to the lowest in over three years as tenant demand weakened - it’s the weakest region in the country.
Private rents in London grew 0.9 per cent in the 12 months to October, compared to 1.2 per cent growth the previous month. It was the biggest slowdown in private rental price growth in the capital since March 2017.
This was down to the pandemic and more Londoners heading out of the city on a permanent basis.
South East England, which includes London’s commuter belt, was the next worst affected region, with rental price growth of 1.1 per cent.
Franz Doerr, chief executive at PropTech deposit alternative platform Flatfair, says falling rental growth indicates tenants have been struggling to pay.
“Both landlords and tenants alike have been badly impacted by the fallout of Covid-19 … With the majority of those working in the beleaguered hospitality and service industry renting privately, many are facing the prospect of soon being unable to pay the rent having been placed on furlough or, worse still, made redundant” he says.
“And while many white-collar renters, particularly in London, may have kept their job and simply decided to move somewhere cheaper or with more space, those who haven’t been so lucky could be leaving the capital simply because they can no longer sustain themselves there, driving down rents as a result.”