GDP growth continues to struggle – the current annual rate of growth falling from 1.8% to 1.2%
The IPHRP (Index of Private Housing Rental Prices) is “an experimental price index tracking the prices paid for renting property from private landlords in the United Kingdom.” (ONS). For more information on why the IPHRP should be the go-to measure of rental price change see this article here.
Note how, at the end of 2016 the IPHRP becomes less steep and the gap between it and the other indices narrows.
In March 2019 the IPHRP fell BELOW the other price indices. The most recent data (for October 2019) shows this path is continuing.
This chart shows the growth in real wages (allowing for inflation) against the growth in the IPHRP. Wages are at a GB level, but we selected IPHRP on a UK-wide statistic. This is simply because they have a common base year (future versions will rebase GB-IPHRP).
The above chart highlights how crucial the PRS is in the supply of homes.
Of the 38 quarters covered by the table:
Though not shown, in Q1 2010 the number of social housing dwellings completed was 6,910. This was a level rarely exceed until 2015. However this level has been exceed in the last seven quarters.
Nevertheless, since 2016 only around 100,000 dwellings for social housing purposes have been completed – with fewer than 16,000 of these being Local Authority built.
This chart shows the growth experienced by the PRS – and the present levelling off of that growth trend.
This is a full draft of what will be our Landlord’s Confidence Index, providing analysis on the key decisions and motivations driving the PRS.
The Landlord Confidence Index breaks down what landlords are telling us in each region.