As a result of this increase annual rent inflation rose to 4.3% from 4% in December. Rents rose fastest in the East Midlands and the South West, where they increased by 1.8% and 1.5% respectively. Rents rose by 0.8% in London where they have only fallen once in the last 13 months. However, rents fell in four regions with the biggest declines in the East of England (1.7%) and Wales (1.5%)
In the last 12 months rents have increased in all regions of England & Wales with the exception of the North East where rents fell by 0.7%
However, all is not rosy for landlords, whilst rents are on the increase property prices are still falling, which will affect total annual returns. In January total annual returns dipped to 2.6% which is the same level as November 2011.
Rental arrears also remained high in January with 10.7% of all rents late or unpaid at the end of the month. This is above the average of 10.2% for the last 12 months.
£200 Pension Cashback Offer
Make a qualifying deposit or transfer a pension to our partner Interactive Investor.
- Deposit or transfer a pension of at least £20k and you could earn £200 cashback
- Terms and Fees apply, Capital at risk
- New & Existing customers opening a SIPP
- Offer ends 31st July 2026
Before starting your transfer, check you won't lose any valuable benefits (such as guaranteed annuity rates or a lower protected pension age) and find out what exit fees you might have to pay
