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Growth in prices ‘highlight the resilience of the UK rental market’

Private rental prices paid by tenants in the UK increased by 1.5% in the 12 months to June 2020, the latest figures from the Office for National Statistics (ONS) show. 

Rental price growth has been held back by a slowdown in London, where private rental prices are up 1.2% year-on-year. 

In the 12 months to June 2020, rental prices for the UK, excluding London, increased by 1.6%, which is the same level of growth recorded in April 2020.

Between January 2015 and June 2020, private rental prices in the UK increased by 9.3%, the figures reveal. 

Focusing on the English regions, the largest annual rental price increase in the 12 months to June 2020 was in the South West, at 2.5%, followed by the East Midlands, at 2.3%.

The lowest annual rental price growth in the 12 months to June 2020 was in the North East and North West, both at 1%.

Private rental prices in Wales increased by 1.4% in the 12 months to June 2020, up from 1.2% in the 12 months to May 2020.

Rental price growth in Scotland remained weaker than that of the rest of the UK, hitting just 0.6% in the 12 months to June 2020, unchanged from the 12 months to May 2020.

The annual rate of change for Northern Ireland in June 2020 was 2.6% - higher than that of the other countries of the UK.

Mary-Anne Bowring, group managing director at Ringley and creator of automated lettings platform, PlanetRent, said: “The ONS figures highlight the resilience of the UK rental market, with steady rental growth across the board despite a turbulent period due to the Coronavirus pandemic.

“While the ONS stats show more subdued growth than other indices, all regions recorded positive growth throughout June.

“London in particular, recorded steady rental growth, demonstrating the robust nature of the capital’s rental market. 

“For institutional investors such as pension funds and insurers looking to enter the UK rental market in search of steady income streams to match their liabilities, today's figures are good news. Similarly, for buy-to-let landlords, it shows there is money to still be made in rental property, despite facing a tougher regulatory and tax environment.”

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