New data on the housing rental market in the UK

The official data published by the UK government, reflecting the rising rents, which is catching up with rates of inflation in most regions of the country.

The latest statistics received from the Agency Rating, based on a survey 470000 tenants, showed an average rent growth in the amount of 2.7% was slightly less than the inflation rate at 2.9% , but slightly higher than the consumer price index, which is equal to 2.4%.

This underlines the need to increase the number of residential construction in the UK, particularly in areas with high demand for rental.

However, it should be noted that the growth in rental prices is not as high as you would imagine if you read the headlines of some publications in the press. This indicates that in the majority case, the authors of such publications tend to exaggerate and overstate the extent of the problems in the sector of rental residential property in the UK. In General, published data showed that the growth in rental prices drags inflation rates. And should be more carefully explore the market to see a more accurate picture of trends in the rental sector, and unacceptable placement in the mass media of misinformation, which sometimes caused an informal survey of the market.

Over the past few years the rising prices of rent in England was in line with inflation and these figures were significantly lower than the price increase in fuel and energy sector, or the rising price of food.

In most regions, rent growth lags behind inflation, reflecting the tough economic conditions of the people in these regions. There was always regional differences and some areas are showing signs of overheating against the backdrop of high demand and constrained supply, such as London. But in these areas, in no event it is impossible to judge England as a whole.

To improve the living conditions of the population in national scale, it is necessary to work in different directions. The government approved the program “Buildtorent”, which will take a number of measures and is aimed at improving the rental market.

® Helen G. Antre 02.06.2013