ONS: Rents up 2.7% in past year

British renters are paying 2.7% more for their homes than a year ago, according to data from the Office for National Statistics (ONS).

The official figures show tenants in London are facing annual price hikes of 4.1%.

However, as the ONS noted: “This headline figure hides considerable regional variation: while all English regions experienced stronger rental price growth in the year to September 2015 than in the year to September 2014, annual growth in Wales and Scotland slowed.”

Tenants in England are now paying 2.8% more than in September 2014. Excluding London means the figure falls to 1.9%.

In the south-east and east of England, rents rose by 2.7% over the year to September, while in the north-east they were up by just 0.5%. In Scotland, rents rose by 1.6%, while in Wales they were up by 0.5%.

Rob Weaver, director of investments at property crowdfunding platform Property Partner, said the main driver for higher rents is weak supply.
 
"It's no surprise than rents rose the most in London, as the supply issue in the capital is especially pronounced. We need to build more homes, but there are a number of obstacles getting in the way, from slow-moving planning departments to the practice of landbanking,” he said, “Recent initiatives such as the Government's decision to make it easier to convert commercial property into residential property are a step in the right direction.”

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