The ‘advertised’ average residential rent rose to £974 in October, increasing by 0.6%, but this reflects a cooling in rental price inflation in many regions of England, Scotland and Wales. Eight regions have seen less than a 1% growth in advertised rental prices in the last month with an average increase of £5.79 per month.

Robin King, from Move with Us, who provided the data, commented: “Average advertised rental prices have remained relatively flat and we are unlikely to see significant increases now until the New Year. People tend to change jobs and make new plans at this time, which is often a key driver of demand for rental properties.’’

In London, advertised rental prices in continued to experience steady growth, increasing by 0.99% in October alone. This trend suggests that sustained growth in the Capital is likely in the medium term. London remains the most expensive place to rent with average advertised rental prices now at £2,300 per month.

The North East is the stand out this month as advertised rental price increases accelerated by 5.35%. This is the largest absolute price increase at £34 compared to the £22 per month increase in Greater London. However, average residential property values in the North East are still falling.

Advertised rental prices fell in East Anglia and Scotland in October though they remain within 1.2% of those achieved a year ago. Asking rents in these regions have fluctuated around the same level for nearly two years, and Move with Us are suggesting that this is a temporary condition and a return to rental price growth is expected in the medium term.

Yorkshire and Humber appears to have peaked after accelerated growth throughout Q3. Advertised rents fell by nearly 1% but this could well be a temporary setback, with long-term growth projected.

The annual rate of advertised rent price inflation was 2.85%, giving a real increase of 0.65% - taking into account the current 2.2% level of (RPI) inflation. Prices in the East Midlands, Yorkshire and Humber, and the North East increased by over 3% in real terms in October, so rental property could provide an effective hedge against inflation in the medium term for many residential landlords.