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Writer's pictureConrad Binding

Rental growth is slowing



  • After the last couple of years of high growth, latest evidence shows that rental growth rates are slowing.

  • Across the largest cities in the UK then the average rate of rental growth slowed to 8% from 10% a year earlier. In London the slowdown has been even more distinct, slowing to 5% on latest data form 13% a year earlier.

  • Affordability plays a central part in rental demand: renters get to make regular choices on where they live, perhaps moving to a cheaper location in the face of steeply rising rents.

  • With the latest affordability ratio for London at 32.1% (versus a 5 year average of 30.0%) it is clear that stretched affordability has been a key factor in slowing the rate of rental growth faster.

  • Average affordability across the 60 largest cities in the UK is currently 25.8% (versus 5 year average of 24.5%). Source: Dataloft by PriceHubble. Data was for the 60 largest cities and towns across the UK and based on flats only. Affordability: % of gross earnings spent on each renters share of rent

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