Election ‘jitters’ saw UK rental growth effectively flatline over May – with a rise of just 0.02%, the slowest pace in over half a decade.
The figure, from the latest Landbay Rental Index, is a fraction of the five-year average growth rate of 0.14%.
To Landbay, the lowdown signals a dip in demand for new tenancies, as renters come to terms with a snap General Election, and ongoing uncertainty around Brexit negotiations.
The Index shows London continues to be the main driver of the slowdown, with rents in the capital sinking by -0.94% in the year to May, compared to growth of 1.62% across the rest of the UK.
Rents have now fallen for 12 consecutive months in London, a full year of softening prices caused both by dampened demand, and also heightened supply, as many homeowners choose to rent out their properties until the weak sales market has rebounded.
The capital was the only UK region to see rents fall in May, but seven out of 12 regions ended the month with a slower rate of growth than seen in April.