ONS data reveals record-breaking surge in rent prices

Rent prices are soaring faster than ever, according to new data.

The Office of National Statistics (ONS) has released data which shows rents have risen by 6.2% in the UK.

This increase represents the largest annual percentage change since the ONS UK data series began back in January 2016.

Record-breaking increase

According to the ONS, London’s annual percentage change in private rental prices was at its highest annual rate since the London data series began in January 2006.

Rents in London increased by 6.9% in the 12 months to November 2023, up from an increase of 6.8% in the 12 months to October 2023.

In England, private rental prices increased by 6.1% in the 12 months to November 2023. Wales had the highest rent price increase across the UK with prices increasing by 7.3%. Rent prices in Scotland remained the same at 6.2%.

Aimee North, the ONS head of housing market indices, told the Guardian: “While housing prices are generally falling, the surge in rental prices continues with another record-breaking increase in the year to November.”

Testing year for UK property market

The ONS house price index reveals UK house prices decreased by 1.2% year-on-year in October to £287,782.

The average UK house price in England decreased by 1.4% over the 12 months to October 2023. The average house price in England was £306,000 in October 2023, which was £4,000 lower than 12 months ago.

In Scotland, house prices remained roughly the same at £191,000. In Wales, prices decreased by nearly £7,000 to £214,000.

Verona Frankish, chief executive officer of Yopa, says 2024 will hopefully be a more stable year for the property market.

She said: “While we’ll be glad to see the back of what has proved a testing year for the UK property market, it’s a year that, at least, looks to be finishing on a positive note with market activity starting to build.

“The market has been stabilising since the first decision to hold interest rates and last week’s decision to do so for the third consecutive time will only help build market momentum ahead of the new year.”

She added: “2024 already looks to be a far more promising one, with stability returning and the hope of an interest rate reduction also likely to bring buyers back into the fold.”