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TODAY'S OTHER NEWS

Cost of renting outstrips inflation

The cost of renting a home in the UK is rising quicker than the rate of inflation, with the average monthly cost up 2.3% in the 12 months to January, according to the latest HomeLet Rental Index. 

The average rent in the UK rose to £953 a month, £23 higher than in the corresponding month last year. 

In London, rents have risen by 2.5% over the past 12 months to £1,627 a month. 

When the capital is excluded, the average rent in the UK is now £793 a month, which is up 2.3% on last year. 

The rental growth recorded in January outstrips inflation, recorded at 1.3% in the Consumer Prices Index (CPI), according to the Office for National Statistics (ONS). 

The region with the largest year-on-year increase is the North West, showing a 8.7% rise between January 2019 and January 2020. 

Nine of the 12 regions monitored by HomeLet showed an increase in rental values between January 2019 and January 2020, with four of those regions seeing an increase of more than 5%.

Region

Jan-20

Jan-19

Annual Variation

Dec-19

Monthly Variation

North West

£764

£703

8.7%

£756

1.1%

Wales

£650

£606

7.3%

£653

-0.5%

Scotland

£666

£627

6.2%

£654

1.8%

East Midlands

£656

£624

5.1%

£662

-0.9%

Northern Ireland

£662

£644

2.8%

£666

-0.6%

Greater London

£1,627

£1,588

2.5%

£1,630

-0.2%

Yorkshire & Humberside

£651

£636

2.4%

£655

-0.6%

North East

£540

£534

1.1%

£553

-2.4%

West Midlands

£699

£693

0.9%

£700

-0.1%

South East

£1,021

£1,022

-0.1%

£1,023

-0.2%

East of England

£907

£909

-0.2%

£913

-0.7%

South West

£851

£859

-0.9%

£840

1.3%

UK

£953

£932

2.3%

£953

0%

UK excluding Greater London

£793

£775

2.3%

£793

0%

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  • Suzy OShea

    Yes, Well for many years, rent increases have been below inflationary levels with some areas seeing falls in rents charged. with a growing scarcity of rented accommodation, such increases are only to be expected!

  • Paul Barrett

    Inflation has nothing to do with rent increases.
    Rather it is the bonkers anti-LL regulations that are forcing LL to increase rents without any reference to what any alleged inflation rate is.
    Rents need to be increased far more than any alleged inflation rate to cope with increased costs which means no increase in disposable income.
    For a LL to be able to receive a RTI in rent such increases need to be far more than any inflation rate.
    If not achievable it ends up with LL subsidising the rental property.
    What is the point of LL doing that!?
    Many LL are therefore selling up or are moving out of AST lettings for other lettings models which aren't subject to all the most recent stupid anti-AST lettings regulations.

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