The regions saw the biggest decrease in rental amounts, accounting for a massive 2% year-on-year decrease. Only Greater London, the North West and the East Midlands bucked the trend. According to HomeLet's research these regions accounted for 3.2%, 2.1% and 2.6% respectively. However, London since 2010, has seen rents increase by a staggering 20.6%.
HomeLet argues that the data shows that the country is becoming more economically emboldened and the effects of the 2008 downturn have started to reduce fiscal pressures. HomeLet also points out that the government's new first time buyers and build to rent schemes are increasing the supply of properties. HomeLet also points towards rental reductions, as the new government schemes allow for longer tenancies which will curb rental increases.
Other notable changes also finds a greater number of 65+ age groups living in rental accommodation, who in the last six months owned their own property. HomeLet found a 7% increase in the above. The changing demographics of British society, HomeLet argues, will continue to make the UK private rental sector a challenging arena. However, with a changing climate comes the chance of effecting real change within the sector.
The HomeLet data further shows that the UK private rental sector is experiencing tenative signs of growth. However, the supply-side issues and other factors are helping to maintain rental costs in both a year-on-year and historical rental sense.
Finally, HomeLet argues that "the influx of people renting a home over the past few years [has] caused the high demand, lack of supply and resulting increases in rental amounts. However, with more options available to potential buyers and tenants, it appears rental prices are beginning to stabilise. Momentum must be maintained though so those living within the private rented sector are offered the best quality properties and security needed as part of their tenancy agreement. "
