Some prices rising since implementation of Renters’ Rights Act
While national rental growth rates have remained unchanged since the implementation of the Renters’ Rights Act, they are growing at a faster rate across more than half of England’s regions.
Across England, the average monthly rent has increased by 0.6% since the implementation of the RRA at the start of May, rising from £1,442 to £1,451 per month. The same rate of growth was seen in the equivalent period prior to implementation, when the average rent increased by 0.6% from £1,434 to £1,442 per month.
By region, the picture is very different with faster rental price growth in five of England’s nine regions.
West Midlands sees largest acceleration
The research, by Benham and Reeves, found that the West Midlands has seen the largest acceleration in rental growth since the RRA, with rents up 0.8% compared to 0.2% growth during the equivalent period beforehand.
In the North West, rents have increased by 1.2% since implementation versus 0.7% previously, while both Yorkshire and the Humber and the North East have seen rents rise 0.9% compared to 0.5% before.
In London, average rents have increased by 1% since implementation, from £2,294 to £2,317 per month, compared 0.6% during the equivalent period beforehand. However, this also varies according by location in the capital.
Mixed rises in London
Southwark has seen rents increase by 1.5% since implementation, compared to 0.3% before, while in Kensington and Chelsea rents had fallen by 0.2% during the period prior to implementation but have since increased by 1.1%.
Greenwich has also seen the rate of rental growth increase from 0.4% to 1.4%, while Ealing has moved from 0.4% to 1.2%. Enfield and Merton have recorded the strongest rental growth since implementation at 1.8%, with Enfield accelerating from 1% during the previous period and Merton from 1.5%.
In other regions, rental price growth stagnated, with rental growth unchanged at 0.4% in the East Midlands, or slowed across the East of England, South West and South East.
Marc von Grundherr, director of Benham and Reeves, said: “The Renters’ Rights Act has been one of the biggest changes to the rental sector in years and it inevitably created a degree of uncertainty amongst both landlords and tenants in the run-up to implementation.
“We saw many tenants sitting on the fence while they waited to see what the new landscape would look like, rather than committing to their next move. Now that implementation has happened and there is greater clarity around the rules of engagement, we’ve seen that pent-up demand start to return to the market.
“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.”
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