Annual growth slows as just two regions have rents rising above the rate of inflation

Just three regions now have average rents that are either level with or rising above the rate of inflation, research suggests.

Data from tenant referencing provider HomeLet for November showed that average rents on new tenancies in London, Northern Ireland and Scotland were up annually by 4.4%, 2.9% and 2.4% respectively.

In contrast, the current inflation rate is 2.4%.

Across the country, average rents on new tenancies have fallen for the third month in a row as annual growth also slows.

Average rents fell 1.1% on a monthly basis to £918 between October and November, continuing a fall that started in September.

The figures are still up annually for November by 1.5%, a slower rate than the 2% recorded in October.

When London is excluded, the average rent in the UK is now £760, up by 0.9% on last year.

Average rents in London are now £1,597, up by 4.4% on last year, the biggest increase this month.

The largest year-on-year decrease this month was the north-east showing a 3% drop between November 2017 and November 2018 to £533.

Martin Totty, chief executive at HomeLet, said: “Although on the increase, on average UK rents are rising slower than inflation at just 1.5%.

“However, there are some areas of the country showing more extreme variance. It’s no surprise that London rents are continuing to rise at nearly double the rate of inflation, having seen a 4.4% increase since November 2017.

“Meanwhile the north-east has seen the greatest decrease in the last 12 months. Despite a modest 0.4% rise since October, the region is down 3% annually.”

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