London’s rents have risen by 15% since last Christmas

London’s rents have risen by 15% since last Christmas

0:02 AM, 13th December 2022, About A year ago

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Tenants are struggling this Christmas with rising food and energy prices, and now comes news that rents have risen by 15% since last Christmas.

That rent increase is for tenants in London, says Ocasa, while the average rent has risen by 10.8% over the same period.

Renters are now paying £1,175 on average per month – compared with £1,060 last Christmas.

However, tenants in London are the hardest hit and are spending £2,011 per month – up from £1,752 last year.

Capital’s renters have seen the biggest rise in the UK

While the capital’s renters have seen the biggest rise in the UK, tenants in Scotland have also seen higher than average price growth of 14% to pay £841.

The smallest rent rises were in Yorkshire and the Humber with tenants paying 7.2% more at £790.

Rents also grew slowly in the East Midlands, increasing by 7.3% – with the lowest price rise being for tenants in the North East who are paying £47 a month more.

‘Landlords are passing on the additional costs’

Jack Godby, Ocasa’s sales and marketing director at Ocasa, said: “Rent prices are increasing because landlords are passing on the additional costs they’re dealing with due to the cost of living crisis, not least the soaring price of energy.

“On top of that, rising mortgage rates means many landlords are being forced to up their prices to avoid making a loss on their investments.

“And as if that wasn’t enough, many high street lenders have removed their buy-to-let mortgage products from the shelves which means landlords can’t get finance for new investments which, in turn, means rental stock is dwindling while tenant demand remains strong.”

He added: “It’s going to be a difficult Christmas for many tenants, but there is definitely hope that 2023 will bring some relief to the situation, as the cost-of-living crisis dissipates.

“However, until the dangerous imbalance between rental market demand and stock supply is properly addressed and remedied, it’s the nation’s tenants who will continue to suffer from the ever-increasing cost of renting.”

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