Rents in the UK, excluding London, are still increasing but at their slowest rate for five years.
Figures from specialist lender Landbay show that despite rental growth across the UK being in positive territory there is what the company calls “a synchronised slowdown” taking place.
In England, excluding London, the level of growth remained at 1.18 per cent, which is its lowest point since April 2013.
With London included, the pace of growth further slows to just 0.81 per cent.
Despite this, the last two months have seen the capital return to positive territory, with the first annual rental increase in 18 months happening in June.
Rental growth in Scotland has hit a record low at 0.98 per cent year-on-year. A similar picture can be seen in Wales, where rental growth reached its lowest level since June 2015.
But the lender says that there still remains hot spots throughout the UK for rental growth.
Monmouthshire in Wales leads the pack with rental growth at 3.22 per cent over the past year, followed by Nottingham (2.87 per cent) and Conwy in Wales (2.71 per cent).
Overall the 10 top performing rental growth areas are Monmouthshire, Nottingham, Conwy, Stirling, Blenau Gwent, Carmarthenshire, Inverclyde, Edinburgh City, Northamptonshire and Bristol.
Aberdeen City and Aberdeenshire top the two worst performing spots – both areas were heavily hit as the local economy was impacted by the drop in oil price in 2014.
John Goodall, CEO and co-founder of Landbay says: “Rental growth across the UK is stuttering. However, there are signs of a recovering market in London and stronger demand for rental properties.”
As a result of last week’s interest rate rise he warns that “tenants could be hit by rent rises in the near future as landlords look to recover some of the cost. Brokers can help their clients navigate the impact of an interest rate rise and make sure they have the best deal for their circumstances.”