The latest data from ONS show that private rental prices in the UK rose by 1.4% in the 12 months to November 2020. However, it remained unchanged since October 2020.
Growth in private rental prices has generally slowed since early 2016 observing a slowdown in London over the same period. Rental growth has started to pick up since the end of 2018, driven by strengthening growth in London. Whereas, rental growth has remained broadly flat since November 2019.
Excluding London, in the 12 months to November 2020, rental prices for the UK increased by 1.5%, down from 1.6% in the 12 months to October 2020. London private rental prices increased by 1.1% in the 12 months to November 2020, up from 0.9% in the 12 months to October 2020.
The ONS figures follow Arla Propertymark’s findings that only a third of agents witnessed landlords increasing rents in October.
The number of new prospective tenants was at an all-time high for the month of October. So, the number of properties managed per branch increased.
The Royal Institution of Chartered Surveyors’ November index reported that tenant demand was more or less unchanged over the month. But the volume of landlord instructions coming onto the market declined.
These supply and demand pressures can take time to feed through to the Index of Private Housing Rental Prices (IPHRP), which reflects price changes for all private rental properties, rather than only newly advertised rental properties.
Focusing on the long-term trend, between January 2015 and November 2020, private rental price in the UK increased by 9.8%.