Buy to Let Rents Still Stuck in a Rut

Buy-to-let rents changed little in 2018, according to official data. 

Average private rents across the UK were up just 1% year-on-year and remained unchanged between December and January. 

In England, rents rose by 1.1%, Wales saw growth of 0.9%, while Scotland had the lowest increase of  0.7%, according to the January 2019 Private Housing Rental prices Index from the Office for National Statistics. 

London rents rose by 0.1% from 12 months to January 2019, down from 0.2% in December 2018. 

In real terms, a tenant paying £500 a month of rent in January 2018 would be paying £505 a year later. 

UK rents excluding London increased by 1.5% in the 12 months to January 2019, up from 1.4% in December 2018. 

London rents were up 0.1% in the 12 months to January 2019; down from 0.2% in December 2018. 

In England, rents increased by 1.1% in the year to January 2019, unchanged from December 2018. 

When London is excluded from England, rents increased by 1.6% in the 12 months to January 2019.

“The largest annual rental price increase was in the East Midlands (2.4%), down from 2.5% in December 2018. This was followed by Yorkshire and The Humber (1.9%), up from 1.8% in December 2018, and the West Midlands (1.8%), unchanged from December 2018,” said the report. 

“The lowest annual rental price growth was in London where prices increased by 0.1%, down from 0.2% in December 2018. It was followed by the North East, which increased by 0.4%, up from 0.3% in December 2018.”

Rent data from tenant referencing firm Homelet shows UK rents rose 2.5% from January 2019, with average rents at £932 a month.

 London rents increased by 3.7% yearly, with average monthly rents in the capital at £1,588 a month. Excluding London, the average UK rental value was £775, 2.0% up last year.