Shock as latest index shows some rents down 9% in past year

The latest Home market report paints a bleak picture for private rental sector investors, with annual asking rent growth dropping to -1.8%, largely driven by a 7% increase in supply. London, along with the West Midlands, South East, and Yorkshire, has experienced negative rental trends, though the East Midlands remains strong with 9% growth.

Only nine of London’s 33 boroughs show positive rental growth, and some areas—such as Camden (-8.9%) and Islington (-9.9%)—have seen significant declines.

On the sales side, annual home price growth in England and Wales sits at just 1.4%, well below inflation. Meanwhile, unsold sales stock has risen sharply for two consecutive months, with 533,797 properties on the market—the highest since October 2013.

Scotland and Yorkshire are leading the property market in growth, showing 4.5% and 4.3% annual increases, while the South East remains the worst performer, losing 0.4% in value. Despite high sales activity, the growing number of unsold properties suggests demand has fallen, particularly following the stamp duty hike.

Additionally, the typical time on market has increased by five days compared to this time last year.