Rental growth has accelerated across five of England’s nine regions since the Renters’ Rights Act came into force, despite the national rate remaining unchanged, latest research suggests.
Analysis by Benham and Reeves shows the average monthly rent across England has risen 0.6% since the legislation was implemented at the beginning of May, from £1,442 to £1,451.
That matches the 0.6% increase recorded during the equivalent period immediately before implementation, when average rents rose from £1,434 to £1,442.
However, the regional picture is more varied, with the West Midlands, North West, Yorkshire and the Humber, North East and London all recording faster rental growth than during the preceding period.
REGIONAL GROWTH
The biggest acceleration is recorded in the West Midlands, where rents have risen 0.8% since implementation compared with 0.2% beforehand.
North West rental growth has increased from 0.7% to 1.2%, while Yorkshire and the Humber and the North East have both moved from 0.5% to 0.9%.
London rents have risen 1% since implementation, from £2,294 to £2,317 per month, compared with growth of 0.6% during the previous period.
Growth remains unchanged at 0.4% in the East Midlands and has slowed in the East of England, South West and South East.
Marc von Grundherr (main picture), Director of Benham and Reeves, says: “At a national level, rental growth has remained consistent, but the fact that rents are now rising at a faster rate across more than half of England’s regions suggests that this renewed activity is already starting to make itself felt.
“For landlords, this demonstrates the continued strength of the underlying rental market.”
LONDON ACCELERATION
Some London boroughs have experienced a sharper change.
Southwark rents have risen 1.5% since implementation compared with 0.3% beforehand, while Kensington and Chelsea has moved from a 0.2% decline to growth of 1.1%.
Greenwich has accelerated from 0.4% to 1.4% and Ealing from 0.4% to 1.2%. Enfield and Merton record the strongest post-implementation growth at 1.8%.
Von Grundherr adds: “It’s still early days but what we’re currently seeing is a rental market that spent months adjusting to a substantial piece of legislation and is now getting back to business.
“For landlords who have remained committed to the sector, the fundamentals of strong tenant demand and constrained supply remain very much intact.”
