Buy-to-let rental increases slow

The average UK rent outside London rose 3.5% over the past 12 months to £749 a month but the pace of growth is slowing.

This continues to outstrip the inflation rate but is down from a July peak of 8.1% a year, according to the latest Homelet Rental Index.

London continues to boom with average rents for new tenancies 7.5% higher than in the same period last year.

Average rental values in London have reached £1,560 a month, more than double the rest of the UK.

HomeLet’s survey of almost 15,000 tenants reveals that while 71% are keen to buy their homes, 64% expected to continue renting for an extended period.

Its research also reveals that a large proportion of tenants are renting their homes for the long term and that they value relationships of trust with landlords and letting agents.

Some 64% said they planned to continue renting for a year or longer, and 90% said they were happy with their landlord.

Martin Totty, Barbon Insurance Group’s chief executive officer, said the slowing pace of rent rises may be welcomed by those planning to sign new tenancies in the months ahead

“Our survey showed that many tenants ultimately aspire to own their own home, but just over half aren’t actively saving for a deposit.

“However, the positive news is that almost nine out of 10 tenants told us that they were happy with the standard of their current rented property, and the majority told us they were happy with the service provided by their landlord or letting agent."