18 February 2019
Tenants spend £1.9 billion less in rent than previous year despite rents rising
Tenants spend £1.9 billion less in rent than previous year, which is the first time this figure has fallen in more than 10 years
- Tenants in Great Britain paid £59.1 billion in rent in 2018, £1.9 billion less than in 2017
- Over the last 10 years the total rent bill has grown by £29.9 billion in Great Britain despite the recent decline
- Nine out of 11 regions saw their total rent bill fall last year, but London saw the biggest drop of (-£0.62 billion)
- The rate of rental growth has slowed over the last 12 months in Great Britain. In January the average cost of a new let rose 0.6% year-on-year compared with 2.4% in January 2018
Table 1: Total rent paid in Great Britain (£billions rounded)
Last year private tenants in Great Britain paid £59.1 billion on rent, £1.9 billion less than in 2017. This is the first annual fall in over 10 years (table 1). The fall has been driven by a drop in the number of households renting and rental growth stagnating. However, over the last 10 years the total rent bill has increased by £29.9 billion in Great Britain. During this period the number of households privately renting has grown by 1.7 million (+52%), meanwhile rents have increased by 12.4%.
The full rental index report compares the change in rental growth / decline across the most recent year vs the last ten years, broken down by region, showing that the rental value of new lets has declined in the south of the UK, with growth achieved in all other areas.