‘Devastating rent rises’ for tenants as landlords sell up

Private rents have soared in England and Wales over the past year, according to a new report from the Office for National Statistics (ONS).

The report, based on data collected from February 2022 to September 2023 as ONS researchers revisit privately rented properties,

They do so, on average, every 12 months in England or nine months in Wales to track rental price changes.

For properties revisited in September, where a property’s rent had gone up, the average percentage increase was larger in Wales (10.8%) than in England (9.4%).

‘We’ve seen devastating rent rises, as more landlords sell up’

The head of personal finance at Hargreaves Lansdown, Sarah Coles, said: “We’ve seen devastating rent rises, as more landlords sell up and tenants multiply.

“Since the last visit, almost two-thirds of English landlords have hiked the rent and almost half of those in Wales have too. And those rises are eyewatering.”

She added: “Where rents have risen, they’re up an average of more than 11% in Wales and almost 10% in England.

“In England and Wales, one in five properties have seen rents rise 10% or more since the last visit, and in London this rises to one in four.”

‘Landlords are under rising pressure’

Ms Coles continued: “The rental market is getting squeezed on all sides. Landlords are under rising pressure.

“They face tougher rules that mean they pay more tax on the way in, as they go along and then when they sell.

“More rights for renters mean landlord costs are increasing, which means they make less money.”

She added: “Meanwhile, those who have borrowed to invest are facing rocketing mortgage costs when they come to refinance.

“Some of those who stay in the rental market are switching to short-term lets and Airbnb for a better yield.”

‘The number of people looking for rental property’

Ms Coles pointed out: “Tenants, meanwhile, are multiplying. The Royal Institution of Chartered Surveyors checks the number of people looking for rental property each month, and it has been rising relentlessly for months.

“A combination of more people renting later in life, more living alone, and an increased desire for self-contained space after the pandemic have all helped boost these numbers.”

She adds: “Making the leap from renting to buying is harder than ever.

“Rising rents make it harder to free up cash to save, while much higher house prices mean we’re aiming for much larger deposits.”

Rents had risen by 10% or more

According to the ONS, rents had risen by 10% or more for around one in five properties revisited in September in England and Wales.

Of all English regions, London had the highest proportion of properties revisited where prices had risen (76.2%), while the North West had the lowest (54.6%).

However, the average percentage price increase for properties revisited was highest in the North West (12.3%) and lowest in the South West (7.8%).

The ONS report suggests that the rising rents in the PRS reflect the high demand and low supply of homes to rent in England and Wales.

‘Changes in average UK private rental prices’

ONS statistician Aimee North said: “Our Index of Private Housing Rental Prices measures changes in average UK private rental prices for the entire private rental sector (PRS) dwelling stock.

“The sample of UK properties includes new lets and existing lets.

“This enables analysis of properties that have faced rental price increases, decreases and remained constant.”