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Is government creating definitive rental index?
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
The number of rental indices is currently enough to fill a football team. Of all of the various monthly versions available, it can be argued that the Government’s first yearly report is most in line with findings recorded from a number of letting agents.
According to the Office of National Statistics’ initial report, private rents across the U.K rose by a single percent in 2013[1]. Somewhat predictably, the highest increase was seen in London, with rents rising by 1.6%.
Despite the seemingly accurate figures, the government is creating definitive rental index and says it is continuing to develop the methods behind their index. At present, the Office of National Statistics records data from rental officers. These rental officers are employed with the Valuation Office Agency and Scottish and Welsh governments.
Is government creating definitive rental index?
Conflicting Statistics
The accuracy of the ONS statistics has yet to be confirmed, with scepticism surrounding the number of rental indices released. Recordings from mortgage lenders, agents and government factions are often different, making it difficult to find accurate figures.
For example, recent figures from Sequence Lettings suggest that annual rents across the U.K are up by 8%, with rents in London rising by only 3%.
Hope
These new government figures give encouragement that they may be close to the definitive version of figures. It is hoped that these figures may become the lettings alternative to the Land Registry’s data on house sales.
[1] http://www.martinco.com/news/2014/01/28/has-the-government-created-definitive-rental-index/#.VMDAYy6sU40
