The cost of renting a buy to let home is standing still, according to the latest official figures.
Rents paid by private tenants increased by 0.9% in the year to the end of July 2018, reports the Office of National Statistics – down from 1% in the 12 months to the end of June 2018.
Across the UK, rents in England grew by 0.9%, Wales saw a rise of 1.0%, while tenants in Scotland paid 0.5% more year-on-year to July 2018.
In London, rents dropped by 0.3%, the lowest annual increase since September 2010.
“Growth in private rental prices paid by tenants in Great Britain has slowed since the end of 2015,” said the latest ONS Index of Private Housing Rental Prices.
“For example, a property that was rented for £500 a month in July 2017, which saw its rent increase by the average rate in Great Britain, would be rented for £504.50 in July 2018. This slowdown in the growth in private rental prices is driven mainly by a slowdown in London over the same period.”
Between January 2011 and July 2018, private rents across the country increased by 16.0% driven by rent increases in London, explained the ONS.
“When London is excluded from these figures, private rental prices increased by 12.6% over the same period,” said the report.
Outside London, the largest annual rent increase was reported inthe East Midlands (2.7%), down from 2.8% in June 2018. The other highest rent increase were in the South West (1.9%), down from 2.1% in June 2018 and the East of England (1.8%), down from 1.9% in June 2018.
Besides London (-0.3%), the next lowest rent changes for the year were in the North East, which rose by only 0.1%, down from 0.2% in June 2018.