Rents in Britain up 2% in year-to-March 2017—Report

Rents in Britain’s private rented sector increased by 2 percent in the 12 months to March 2017, down slightly from the 2.1 percent recorded the previous month, the latest index data shows.

In England, private rental prices grew by 2.1 percent, Wales saw growth of 0.7 percent while Scotland saw rental prices decrease by 0.1 percent, according to the figures from the Office of National Statistics (ONS).

The figures also show that year on year rents have increased by 2 percent in the UK with an annual rise of 2.1 percent in England, but by just 0.7 percent in Wales while in Scotland rents were down 0.1 percent in the 12 months to March 2017.

The annual rate of change for Wales has not reached 1 percent since March 2012 and annual growth in Scotland has declined from a high of 2.1 percent in the year to June 2015. The ONS report suggests that this weaker growth may be due to stronger supply and weaker demand in Scotland.

The largest annual rental price increases were in the South East with growth of 3.4 percent, up from 3.3 percent in February 2017, followed by the East of England up 2.8 percent and unchanged from February, the East Midlands up 2.5 percent but down from 2.8 percent in February and the South West also up 2.5 percent but down from 2.7 percent in February.

The lowest annual rental price increases were in the North East with growth of just 0.7 percent and down from 0.9 percent in February, the North West up 1.3 percent and up from 1.2 percent in February, Yorkshire and The Humber up 1.6 percent and up from 1.5 percent in February and London up 1.6 percent but down from 1.9 percent in February.

The index also shows that between January 2011 and March 2017, private rental prices increased by 14.5 percent, strongly driven by the growth in private rental prices within London. When London is excluded, private rental prices increased by 10.4 percent over the same period.

Rental prices excluding London increased by 2.2 percent in the 12 months to March, unchanged from February 2017 while the 1.6 percent growth rate for London is 0.4 percent below that of the rest of the country.