Rent prices in England and Wales have dropped for the first time since March, according to the latest Buy-to-Let Index by Your Move and Reeds Rains.
Rent Prices Drop for First Time Since March
The report states that rents decreased by 0.1% between July and August, standing at an average of £803 per month.
Rents are now 5.5% higher than they were in August 2014, a slowdown on July’s figure, when annual growth was a record high of 6.8%.
Although rent inflation in London and the South East began slowing, rises in the Midlands and the East of England reached all-time highs.
However, the index also reveals that despite slower rent rises, the proportion of rent in arrears has increased to 9.9%.
Director of Your Move and Reeds Rains, Adrian Gill, says: “August has witnessed a break in a series of blistering rent rises.
“Yet this mild correction comes on the back of a whole year of acceleration. Rents are rising rapidly on an annual basis, underpinned by an improving economic picture for many potential tenants – and the peak lettings season is only just about to start this autumn.
“There is also no major change to the fundamentals of supply and demand. This means that in the longer term, faster rent rises may become a semi-permanent feature of the British property market.
“Alongside purchase prices, rents will continue to rise rapidly until something happens to address a drastic shortage of homes in the UK.”1