The average UK rental values continued to grow towards the end of last year according to data with the average rent now £921, up 1.5 per cent in 12 months.

When London is excluded, the average rent in the rest of the UK is now £763, up 0.7 per cent on a year earlier.

Average rents in London are now £1,596, up 4.7 per cent – while this is the third consecutive month where the average rent has decreased, it’s also the third consecutive month where the rate of annual growth in London has been above 4.0 per cent.

The region with the largest year-on-year decrease is the North East, showing 4.6 per cent down on December 2017.

Commenting on the data, HomeLet chief executive Martin Totty says: “Positively for both tenants and landlords, this year we’ve seen stability in UK rental price growth, with increases remaining broadly in line with the rate of consumer inflation. 

“For landlords there remains a sustained demand for property, with the private rental sector continuing to provide the market with both flexible and long term housing options.”

Commenting on the outlook for 2019, he adds: “Whilst the outlook for property investors remains positive, one of the key concerns for the market in 2019 would be a potential lack of supply in certain regions. 

“The government’s squeeze on private landlords via taxation changes and more regulation could discourage their continued participation in this important sector. Unlike the trends we saw in 2018, any reduction in supply could lead to rental increases that are above the rate of consumer inflation.”