ONS Confirms Rents Rising Below Inflation

According to the latest figures released by the Office for National Statistics, UK rents rose by an average 1.4% between March 2013 and March 2014, while the consumer price index rate over the same period was 1.7%, and 2.5% for the retail prices index rate. Even though the CPI rate of inflation dropped to a four-year low of 1.6% last month, average rents are still shown to be decreasing in real terms, easing the strain on tenant finances.

This has prompted the Residential Landlords Association to speak out against those in government who are in favour of rent controls, tying rents to the rate of inflation, because this would leave tenants worse off.

According to their figures, had rents been tied to the rate of inflation over the last decade, PRS tenants in England would have seen their rents go up three times more than they actually did.

RLA vice-chair, Chris Town, said, “The real problem is with supply. The government should be making it easier for private landlords to provide more homes. An expanding private rented sector has a key role in tacking the nation’s housing crisis.”

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