Rental price inflation in the UK has now fallen below the general rate of inflation, the latest data from the HomeLet Rental Index reveals, as landlords peg rents affordable for their tenants.

Rents in the UK rose by an average of just 0.8% in February compared to the same month of 2016, HomeLet’s data shows; well below the general rate of inflation, which is now running at 1.8% according to official statistics.

The decline in the pace of rental price appreciation, which was 4.7% as recently as June 2016, may become a concern for landlords. New research released by HomeLet reveals over half of the 3,726 landlords surveyed expect to have to raise rents in the face of mounting cost pressures. However, almost a third of those, (29%) plan to defer this to 2018.

HomeLet’s CEO, Martin Totty, said: “In recent months, we have seen landlords treading very carefully with rental price rises, amid concerns about tenants’ ability to pay. With more than one in five landlords (21%) blaming an increase in their tax liability for raising rents, it remains to be seen if this can sustain.”