Rental growth in UK slowing

Rents across the UK continued to rise during June, but the first half of 2016 has been characterised by a slowing in the pace of rental increases. Rents agreed on new tenancies across the UK, excluding London, increased by 3.5 per cent in the second quarter to £773 per month compared to a year ago and by 3.9 per cent to £1,575 in London over the same period. However, this is down compared to the UK wide figure for May which was 4.4 per cent and 6.2 per cent for London, according to the data from the June HomeLet rental index. Rents continue to rise in almost every area of the country, with 10 out of the 12 regions surveyed seeing an increase over the three months to the end of May. The index report says that the more modest rental increases seen in June are a continuation of a trend that has developed throughout the first half of the year, with rents rising across much of the UK each month, but at a slower pace than was the case throughout most of 2015. Last June rents were rising at an annual rate of 7.8 per cent and 10.1 per cent in London.