Unlike house price expectations, the theoretical link between rent expectations and actual rental growth is weak. Indeed, changes in rental expectations have proven to be a poor leading indicator. Accordingly, we doubt the recent rise in expectations signals a further acceleration in rental growth is on the horizon. Rather, we expect growth will remain close to its current level of 3.6% y/y for the remainder of the year.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services