Rent prices continue to slow

But early a quarter of all tenants still believe that they will never own their own home

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The Independent Online

Rental prices fell in eight regions of the UK in September 2014, with four experiencing increases, says a new report from HomeLet.

It estimates the average monthly private rent in the UK excluding London is now £728, with the average in London £1, 466.

Only Greater London (0.1 per cent), the West Midlands (1.2 per cent), the South West (two per cent) and Northern Ireland (4.2 per cent) saw price growth.

"There can be an element of seasonality to the rental market with September often recording marginally lower average prices than other months, perhaps due to the number of student letting agreements being signed at this time of year," said HomeLet's Chief Executive Officer.

"However, with this month's data being the second consecutive month of slower rental price growth, and house prices indices indicating a slowing of house price growth, which could suggest movement to a period of more settled rental prices, even in previously booming markets such as London and the South East."

According to a new survey from Knight Frank, nearly a quarter of all tenants in the private rented sector believe that they will never own their own home.

Around a quarter of the 3,500 tenants surveyed by Knight Frank said that they expected to always rent a property, although a similar figure expect to leave the sector within two years.

The survey also showed that nearly a third are renting because it suits their lifestyle and/or they don’t want a mortgage. 

Grainne Gilmore, Head of UK Residential Research at Knight Frank, said: "The dynamics of the housing market, where supply has failed to keep up with demand which in turn has played a role in pushing up house prices, has also put home ownership beyond the reach of many young workers, especially in key employment hubs. This, coupled with an increasing mobile and flexible workforce, has led to rising demand for privately rented property."

The report also showed that more than a third of tenants want to live within a six minute walk of their nearest train station or bus stop. Accommodation in a central location is partcularly important for younger people, with just over half of 18-24 year olds saying they would live in a smaller studio flat in a central location if it made the rent more affordable.

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