UK rents fell 0.4% in November to £1,290 as the seasonal slowdown hit the market, new figures have revealed.
According to the monthly Landbay Rental Index, rents fell by 0.6% in London, bringing down the UK average. Despite the dip, rents continue their upward trajectory, albeit at a slightly less frenetic pace.
UK rents climbed 2.9% compared to November last year, in line with the rise in UK wages of at 3.0%.
Landbay said rent increases were fastest for one beds that are most popular with first jobbers and young professionals (up 4.0% year-on-year), and three bed properties, which are often rented by families moving for work (up 3.6%).
Rents have climbed 7.0% since January 2013 when they stood at £1,206, slightly ahead of wage growth which is up 4.8% since January 2013.
The rental increase over this period has been led by rent rises for one bed flats, up 8.6% over the same period.
York was the only area outside the South East to feature in the top 10 rental risers.
John Goodall, co-founder and CEO of Landbay, said: “London’s rental market is very sensitive to changes in supply and demand. The November dip is likely to reflect softening tenant demand as new hiring slows in the run-up to Christmas and fewer people move to the capital for work.
“On an annual basis rental inflation is tracking wage growth quite closely. Scotland was only part of the UK to see rental growth below 2%. The big picture is that we are in the midst of a housing crisis and that wages are rising – both these facts mean that rents are more likely than not to continue to climb next year.
“With house prices rising at the same time it is little wonder that there is such a strong appetite for investments that are secured against British homes.”
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The slow down is due to Xmas period which each year people have other things to concern about. And with the obscene increase for one or two bed flats are now out of reach for a single person is a widow or other elderly person! It seems that landlords and gov have forgotten those elderly widowed 55+ also need a place to live in and not a six floor flat. Also noticed how any flat above 1st floor are difficult to rent as trying to carry up shopping up 2 flights of stairs or even a pram. Yet all what is being built are flat ghettos about 5or 6 floors high with no lift facilities stupid!