General inflation is now outpacing rent rises
Inflation is now outpacing rental price growth in the UK, and, in London, rents have barely changed over the last year.
According to data from Homelet, UK rents grew on average by 0.8 per cent annually in February, and in London rents edged up by just 0.4 per cent. Overall inflation is now at 1.8 per cent.
Read more: Hey London renters: Stop complaining – it could be a lot worse
This means the nation's average monthly rent was just £7 more expensive, at £746 per month. London's average rent in February was almost double that figure at £1,520 per month.
Homelet – which bases its monthly data on new tenancies – said that the figures showed landlords were trying to maintain good relationships with tenants, even as their tax burden rises, because they are wary of rents becoming unaffordable.
The only parts of the country where rents are outpacing inflation are Yorkshire, Northern Ireland, the North West and Wales.
Read more: Time to move: Rents have fallen in the Home Counties
Rental inflation has tumbled since June 2016, when new tenants were paying 4.7 per cent more in monthly payments than they were the year before.
Martin Totty, Homelet's chief executive, said:
In recent months, we have seen landlords treading very carefully with rental price rises, amid concerns about tenants' ability to pay.
He added that more than a fifth (21 per cent) of landlords are blaming rent rises on taxes, and that nearly a third of landlords say further tax changes are their biggest worry.