UK rents in the private rental sector rose by 1.8% in the year to June 2017, according to the most recent data released by the Office for National Statistics.
This represented the third consecutive month of rental growth at this figure, suggesting those with landlord insurance are enjoying steady yields.
Rents in England rose by 1.9% in the month, while those in Wales increased by 1.1%. Scotland saw only a small rise, of 0.2%.
By region, London saw a slower rate of growth, of 1.3% over the yearly period. This was 0.5% below the national rate.
The largest increases were in the South East, at 2.8%, unchanged from May. This was closely followed by the East Midlands at 2.6%, the South West at 2.4% and the East of England at 2.3%.
On the other hand, the smallest annual rental rises were evident in the North West, where growth stood at just 0.5%. The North West saw increases of 1.5%.
In addition, the data shows that between January 2011 and June 2017, rents rose by 14.8%, driven by historical growth in private rental fees inside of London. When the capital is excluded, prices rose by 10.8% over the same period.
There has however been a slowdown in private rental price growth since the end of 2015. Since 2011, rental prices in England have risen more than those in Wales and Scotland.
In Wales, the annual rate of change to June was 1.1% – the first time that this rate has been above 1% since February 2012.
For Scotland, growth is more subdued, staying around the zero mark since August 2016. This could be due to stronger supply and lesser demand in the country.
John Goodall,, CEO and co-founder of Landbay, observed: “While the pace of house price growth may have slowed, house prices still continue to rise, ultimately meaning that fewer people can afford to buy, which can only place greater pressure on the UK’s rental sector. For that reason it’s essential that new construction is planned across all tenures, so that rents don’t escalate to the point where they’re inhibiting aspiring homeowners’ ability to save for a deposit.’
‘Quite simply, we need to build more purpose built rental homes to support those hoping to take their first steps onto the property ladder.’