Growth in prices ‘highlight the resilience of the UK rental market’
Private rental prices paid by tenants in the UK increased by 1.5% in the 12 months to June 2020, the latest figures from the Office for National Statistics (ONS) show.
Rental price growth has been held back by a slowdown in London, where private rental prices are up 1.2% year-on-year.
In the 12 months to June 2020, rental prices for the UK, excluding London, increased by 1.6%, which is the same level of growth recorded in April 2020.
Mary-Anne Bowring, group managing director at Ringley and creator of automated lettings platform, PlanetRent, said: “The ONS figures highlight the resilience of the UK rental market, with steady rental growth across the board despite a turbulent period due to the Coronavirus pandemic.
“While the ONS stats show more subdued growth than other indices, all regions recorded positive growth throughout June.
“London in particular, recorded steady rental growth, demonstrating the robust nature of the capital’s rental market.
“For institutional investors such as pension funds and insurers looking to enter the UK rental market in search of steady income streams to match their liabilities, today's figures are good news. Similarly, for buy-to-let landlords, it shows there is money to still be made in rental property, despite facing a tougher regulatory and tax environment.”