Rents in England and in most of the rest of the UK continue to rise above inflation, that’s according to the latest statistics available – Rental Price Index – from the Office of National Statistics (ONS).
With the Consumer Prices Index officially at 0%, the rise in rent levels across the country is a reflection of the supply/demand imbalance in the housing market, though there are significant variations in rent levels across the regions.
Main points of the ONS rent index report to September 2015
- Private rental prices paid by tenants in Great Britain rose by 2.7% in the 12 months to September 2015.
- Private rental prices grew by 2.8% in England, 1.6% in Scotland and 0.5% in Wales in the 12months to September 2015.
- Rental prices increased in all the English regions over the year to September 2015, with rental prices increasing the most in London (4.1%).
The Index of Private Housing Rental Prices (IPHRP) is a measure of the change in the price of renting residential property from private landlords.
The index is published quarterly as a series of price indices covering Britain and its constituent countries and the English regions.
IPHRP measures the change in rent levels tenants pay private landlords, allowing a comparison between the prices tenants pay now to what they paid 12 months ago. The index does not measure the change in newly advertised rental prices only, but reflects price changes for all private rental properties.
The official figures show tenants in London had increases of 4.1%, which underlines the ONS proviso about regional variations:
“This headline figure hides considerable regional variation: while all English regions experienced stronger rental price growth in the year to September 2015 than in the year to September 2014, annual growth in Wales and Scotland slowed.”
Tenants in England are now paying 2.8% more than in September 2014, but if London is excluded this means the figure falls to 1.9%.
In the south-east and east of England, rents rose by 2.7% over the year to September, while in the north-east they were up by just 0.5%. In Scotland, rents rose by 1.6%, while in Wales they were up by 0.5%.
ONS say that the IPHRP is released as an experimental statistic. This is a new official statistic undergoing evaluation and therefore it is recommended that caution is exercised when drawing conclusions from the published data as the index is likely to be further developed. Once the methodology is tested and assessed, and the publication meets user needs, the IPHRP will be assessed against the Code of Practice for Official Statistics to achieve National Statistic status.
Rental Price Index Shows Annual Increase – https://t.co/74KYGlJ2rg
— LandlordZONE (@LandlordZONE) November 3, 2015