|A new economic index created by academics and based on a database of millions of properties has shown that average UK rent increased by just £11.55 or 1.51% over the last year.
The new Deposit Protection Service rent index, published for the first time, is based on the UK’s largest deposit protection provider’s database of rent levels across the UK over the last ten years.
Its figures show that between the third quarters of 2016 and 2017, average UK rent increased to £775.13 – its slowest rate of increase for five years.
The DPS figures also show that the rate in which rents increased was slower when compared to inflation than in any other year since the crash between the third quarters of 2008-2009, and that rents increased more slowly than inflation (by 1.19%) for the first time since 2013 (when it was 0.46% slower).
Julian Foster, managing director at The DPS, said: “Figures suggest that the rental market has slowed nationally since the third quarter of 2016, and letting agents, landlords and tenants will be keen to see whether this trend continues over the next year.
“This increase is the smallest since 2012 and comes after three years of particularly high growth, suggesting the influence of other factors such as employment and inflation.”
The new index was developed by two professors at the Cranfield School of Management.
They are Professor of Global Economy Joe Nellis, who was jointly responsible for the research and development of the Halifax and the Nationwide house price indices, and Catarina Figueira, Professor of Applied Economics and Policy.
Nellis said: “The new index should be viewed as an important indicator in understanding trends within the UK economy, and is particularly useful in analysing the property, housing and private rented sectors.”