Rental growth dips as market stabilises

New data from Connells-owned agency Hamptons shows that nationally the rate of annual rental growth moderated slightly last month.

Rents across Britain rose 6.2 per cent in July compared to the same month in 2020, down from 8.5 per cent in June.  

Southern regions, except for London, recorded the strongest annual growth.

Last month saw five of Britain’s 11 regions record their fastest ever yearly rent rise since the Hamptons Lettings Index began in 2014.  Rental growth hit double-digits in four regions, down from six regions in June.

Inner London rents continued their recovery, down 11.0 per cent on the same time last year.  This compares to an annual fall of 16.5 per cent in June and 20.3 per cent in May.  

Here the number of tenants registering was up 13 per cent year-on-year, while the number of homes available to rent was down 45 per cent on 2020's record highs.

Aneisha Beveridge, head of research at Hamptons, comments: “Tenants are suffering from less choice in the rental market. And this lack of stock is underpinning rental growth, which remains well above normal levels, with few signs it’s likely to significantly slow over the coming months.  

“This lack of stock is also likely to suppress activity, meaning fewer homes could be let in 2021 than in 2020, despite last year’s lockdown.”