Source: MIL-OSI Submissions
Rental price indexes: August 2020
11 September 2020
In August 2020 compared with July 2020:
- the index for the stock measure of rental property prices rose 0.2 percent
- the index for the flow measure of rental property prices fell 1.1 percent.
In August 2020 compared with August 2019:
- the index for the stock measure of rental property prices increased 3.2 percent
- the index for the flow measure of rental property prices decreased 0.5 percent.
Impact of rent freeze introduced as a result of COVID-19
After further investigation into the impact of the rent freeze on the stock measure, we will not adjust the model for the following reasons:
- There is no impact on the headline consumers price index.
- Less than half (43 percent) of the total number of tenancy bonds are affected by the freeze.
- Once the rent freeze is lifted on 25 September 2020, we expect the series will return to the modelled level in the following months.
We have produced an alternative estimate of the impact of the rent freeze to help users better understand any potential overestimation of price inflation. This is available on request.