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Rate of rental growth halves in 2016, says Countrywide

The rental market of 2016 was characterised by a reversal of trends, according to Countrywide, which reported that the average rent in Great Britain ended the year up 1.6% - half the rate of 2015 (3.1%) and the smallest annual increase for seven years. 

Rents in the North of England rose faster than those in the South, and London moved from having the second fastest rental growth to the third slowest of the 11 regions in Great Britain. The average cost of renting a home in the capital fell 2.9% last year, the largest fall since March 2009.

The slowdown in rental growth has been driven by an increase in the number of new homes available to rent. Over the year the average number of available rental properties increased by 12% across the country compared to the previous 12 months. While every region saw an increase in available rental stock, London saw the greatest growth, with 22% more homes to rent compared to 2015. Faced with greater choice, tenants have been able to negotiate on price. 

Slowing rental growth has also led to a fall in the number of tenants agreeing an increase in rent when renewing contracts. In 2016, 33% of tenants who renewed their contract saw their rent go up, down from 37% in 2015.

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