Expectations point to rent prices continuing to climb, according to the Royal Institution of Chartered Surveyors
Average private rent prices in the UK increased by 8.7% in the 12 months to May 2024, according to the Office for National Statistics.
This is down from 8.9% last month and the record-high 9.2% in March.
Rents inflation climbed to £1,301 (8.6%) in England, £736 (8.5%) in Wales and £957 (9.3%) in Scotland in May. In Northern Ireland, it grew by 10.3% in March.
In England, average rents rose by the highest amount in London, at 10.1%. This was lower than the record-breaking 11.2% reported two months ago, the highest annual inflation since data were first released in January 2006.
Rents inflation was the lowest in the North East, at 6.1%.
The Royal Institution of Chartered Surveyors (RICS) in May said tenant demand seemed to improve over the month, with May’s net balance rising to 35%, compared to the 53% average seen throughout 2023. The net balance score is calculated by the number of surveyors reporting an increase in demand as opposed to a decrease.
At the same time, landlord instructions remained stable, reaching a net balance of -3%, signalling the first occasion since August 2022 in which this measure has shifted into neutral territory.
However, RICS also reported that rental prices are likely to continue increasing even if the speed of growth is slower than what has been observed in the last 18 months
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