UK rents soar by over a third above inflation in a year

UK renters are feeling the pinch as rents rose by more than a third above inflation in the past year, according to new data.

The Deposit Protection Service (The DPS) tracks the average monthly rent and it found that rents reached £1,121.46 in Q3 2023, a 9.13% increase (£93.79) from Q3 2022.

Meanwhile, inflation rose by 6.7% in the same period, meaning that rents outpaced inflation by 36.2%.

A survey by The DPS of over 2,500 tenants in Q3 also found that 43% of respondents reported a rent increase in the past six months, up from 36% in March.

‘Inflation-beating rent increases’

Matt Trevett, the managing director at The DPS, said: “Every region across the UK has witnessed inflation-beating rent increases during the past 12 months.

“The combination of increasing demand for rental property and cost-of-living pressures seems to be fuelling sustained rent rises.”

He added: “Rent increases are also affecting every type of property, whether flats, terraced, semi-detached or detached, which may also reflect demand for rental property outstripping supply in many parts of the UK.”

Tenants said they were worried about paying their rent

However, 54% of tenants said they were worried about paying their rent in the future, a 3% increase from March.

The DPS said that the rent rises were driven by high demand and low supply in the rental market.

Scotland saw the highest percentage rent increase of any region, with rents jumping by 13.56% (£123.45) to £1,033.80.

The east of England followed with an 11.32% rise (£113.55) to £1,116.87.

London had the highest value rent increase, with rents soaring by 13.31% (£173.13) to £1,922.37.

Yorkshire had the lowest rent increase of 6.73%, adding £48.18 to £764.24.

Among property types, flats in the east experienced the highest percentage rent increase of 16.88% (£149.36) to £1,034.41.

Detached properties in the south east had the highest value rent increase of 12.66% (£208.84) to £1,857.81.