PRS rents show signs of stabilisation as increases slow

The UK’s private rented sector is beginning to show signs of stabilisation as rent rises are slowing down, research reveals.

According to Spareroom, rents rose 4% on average in the UK in Q3 – the smallest year-on-year increase seen this year.

While average rents are still rising, this shows signs that the market is slowing down, the flatshare platform says.

‘Rents are still creeping up’

A director of the firm, Matt Hutchinson, said: “Although rents are still creeping up overall, we’re starting to see signs that things are slowing down, particularly when it comes to the number of people chasing every room on the market.

“That’s positive news, but there’s a long, long way to go before rents will feel genuinely affordable.”

The regions that have seen the biggest increases in average rent prices are Northern Ireland (+8%), East Anglia (+6%) and the North West (+6%).

The cities and towns that saw the biggest year-on-year increase are Southend-on-Sea (+11%) and Dundee (+10%), while Warrington (-2%) was the only area in the UK to see a fall in average rent prices.

London’s rents have fallen

Spareroom says that London’s rents have fallen for the third consecutive quarter, however, the ratio of people looking for rooms in the capital is 3.67, down from 5.72.

This compares with the UK-wide ratio of 3.99, which is down from 6.19.

Outside of London, the most expensive city to rent in is Edinburgh, with an average room costing £920 per month.

Overall, looking at the annualised data, the news is looking more positive for renters as the PRS begins to show signs of rebalancing.