There has been a decline in Rental price inflation in the UK in each of the seven past months.
The latest figures have shown that rents rose by an average of just 0.7% in January when compared to the same month in 2016.
In June 2016, when the market was at its peak, rents were increasing at an annual rate of 4.7%, the Property Reporter reveals.
The average rent for a new tenancy in January was £888 per month compared to £882 in January of the previous year.
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It is possible with the current rate of growth that average UK rents could fall over the next few months.
The slowdown in rental growth has been most prominent in areas that previously experienced the largest increases.
January saw annual rental price inflation at just 0.4% in Greater London whereas this had been 7.1% in July 2016.
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Similarly, the South East saw rents on new tenancies down by 0.6% when compared to January 2016. However, rents in the area had been rising at a rate of 4% in June 2016.
“The figures indicate that landlords are aware of the increasing concerns about affordability and recognise what their tenants can be expected to pay. However, it is possible that rental prices may begin to rise once again following the introduction of the cut on mortgage interest tax relief later this year,” said a spokesperson for Discount Landlord.
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