Annual rental inflation at 10.6% for May

The HomeLet Rental index for May indicates annual average rental inflation stands at 10.6% with an average rent of £1,103 or £928 excluding  London.

This is an overall monthly change of 1.1% with inflation the highest in Northern Ireland at 1.9%.

Mike Dawson, Group Sales Director for HomeLet and Let Alliance said: “With pressure on households, we’re seeing tenants stay in properties for longer. As summer approaches, we expect them to move at a faster rate, continuing the upward trajectory of average rents for new tenancies.

“The rental market plays a critical role in satisfying the UK’s housing needs, and the long-awaited Renters’ Reform Bill needs to strike the right balance by protecting both tenants and landlords. With many landlords already exiting the market, the government’s commitment to legislation will provide the biggest change to rental law in a generation and shouldn’t risk marginalising landlords even further.

“There’s a genuine risk that we will continue to see a decline in the number of landlords in the UK. Ultimately, tenants will foot the bill if the level of stock decreases and demand grows, as we saw with the 2019 Tenant Fees Act.