New tenants now seeing fewer rental increases

New tenants now seeing fewer rental increases

Rents for new tenancies in the UK have fallen or stayed level in the three months to the end of November in ten of the 12 regions across the UK, according to new data in the latest HomeLet Rental Index. 

The study showed that in the period examined, the whole country, excluding London, saw prices hit a level of £743 per calendar month, which represented a 0.7 per cent fall when compared to the same time three months earlier. 

In London, it was a similar story, with the average rental price in the capital of £1,544 per calendar month for new tenants being one per cent lower than the previous quarter. 

During the period that HomeLet surveyed, only two regions saw any rises in the price of rent for newly signed tenancies. In Yorkshire and the Humber, the average new tenancy price sat at £626 per calendar month, which was up 0.8 per cent compared to three months ago. 

The East Midlands saw the highest price rise for new tenancies, however, with the £635 per month average representing growth of 1.2 per cent. 

Overall, the activity in the private rented sector in the past three months has been positive for tenants. The fact that prices for new contracts are lower means people are able to get themselves somewhere to live for a little cheaper than they have in the past. 

Martin Totty, CEO of HomeLet’s parent company the Barbon Insurance Group, said that most of the rises in the market were seen at the start of the year, which has meant that as 2015 has gone on, people have seen more modest increases, and even falls in what they are having to pay for rent.