Average UK private rents increased by 8.6% in the 12 months to July 2024 according to official government figures, unchanged from in the 12 months to June 2024.
Average rents increased to £1,319 (8.6%) in England, £748 (7.9%) in Wales, and £965 (8.2%) in Scotland, in the 12 months to July.
London was the English region with the highest rents inflation, at 9.7%. This was unchanged from the 12 months to June 2024 and was below the record-high annual rise of 11.2% in March 2024.
Rents annual inflation was lowest in the North East, at 6.1% in July 2024. However, this was a joint record high for the North East and was up from 5.9% in June 2024. In July 2024, the average rent was highest in London (£2,114) and lowest in the North East (£676).
Nathan Emerson, chief executive at Propertymark, comments: “The rental market continues to feel the harsh reality of ongoing pressures on housing demand, which are outstripping current supply. This has a real-world effect on rental prices for consumers and that consequence is prices tend to be pushed further upwards.
“It is crucial the mismatch between supply and demand is addressed as a priority to help ease a current ‘nine applications per available property’ trend that we are witnessing. It’s an unhealthy situation and one that can only be solved by ensuring long term investment in a diverse mix of sustainable housing to keep pace with growing demand.”
And a spokesperson for investment service Moneybox states: “As a nation of aspiring homeowners, news that rental costs continue to rise is concerning. However, with a new government committed to supporting wealth generation across the country, perhaps there is a glimmer of hope for aspiring homeowners in the UK. Our industry must start to seriously consider the long-term effects of ever-increasing rental costs. We know how these are continuing to eat into renters' disposable income and impact their ability to build a deposit for a future home.
"While we welcome the new government's ambition to build 1.5m new homes, the measures needed to address the housing crisis are many and complex, it remains true that saving a sufficient deposit is one of the biggest challenges many people face and this is why pragmatic measures are needed now.”
And Patricia McGirr - founder of Repossession Rescue Network - tells the Newspage agency: “Real pain is being felt by tenants due to soaring rental costs. For those already teetering on the edge financially, this is more than just an increase, it’s a pressure cooker ready to explode. I see the human toll behind these numbers daily. Families are being squeezed from all sides.
“House prices are inching out of reach for many, and rents are escalating to unsustainable levels. It’s a cruel irony that the roof over your head is becoming a financial burden too heavy to bear for many. This isn't just an economic challenge; it’s a social crisis in the making.
“Behind every statistic is a family struggling to keep their home and landlords facing untenable costs. Recent figures showing landlord repossessions on the rise shed light on the difficulties being faced by many tenants."
Via @LandlordToday