First decline in renters' annual spending in 10 years
Tenants in Britain spent £59.1bn on rent in 2018, which was £1.9bn less than in 2017, marking the first annual decline in over a decade, the latest study from Hamptons International revealed.
The fall was driven by falling numbers of households renting and rental growth stagnating said the report.
Nine out of 11 regions in the UK saw their total rent bill fall last year, with London, at -£0.62bn, seeing the biggest drop. The East Midlands (£0.13bn) and the North East (£0.06bn) were the only regions that saw a rise.
Nevertheless, over the last 10 years the total rent bill grew by £29.9bn, according to the luxury real estate agents. Over that same time frame, the number of households privately renting expanded by 1.7m (+52%), even as rents increased by 12.4%.
Every region sported higher rental bills, led by a jump of £10.53bn in London.
Aneisha Beveridge, head of research at Hamptons International, said: “The total amount of rent paid by tenants in Great Britain fell for the first time in over a decade last year. Despite average rents rising 0.4% in 2018, fewer people renting homes meant the total rent bill shrank by £1.9bn since 2017.
“The slowdown over the last year was mainly driven by London, but rents are now gradually starting to rise again in the capital. Meanwhile the South East and South West both recorded falling rents last month.”