Renters see biggest annual rent rise since 2016

Tenants have seen rents rise yet again with the Office for National Statistics (ONS) reporting that rent prices grew by 4% in the year to November.

The latest Private Housing Rental Prices index highlights that rents were slightly higher in last month than October’s 3.8%.

However, the annual percentage change is the largest recorded by the ONS since January 2016.

Rents outside of London grew by 4.2%

The rents being paid outside of London grew by 4.2%, from October’s 4.1%, and in the capital, they grew by 3.5%, up from a 3% rise in October.

When the regional variations are analysed, private rents grew annually in England by 3.9%, in Wales by 3.1% and in Scotland by 4.4%.

The highest annual percentage change for rent was for landlords in the East Midlands at 5.1%, while landlords in the North East and London saw the lowest rise of 3.5%.

‘London finally saw a slight decrease in renter demand’

Commenting on the latest ONS figures, Gareth Atkins, the managing director of lettings at Foxtons, said: “After an uncharacteristically busy October, London finally saw a slight decrease in renter demand, in line with the usual seasonal trend for November.

“It also saw a slight increase in new listings, which goes against the usual trend – an especially welcome surprise in a year of low lettings stock.”

He added: “However, there were no sweeping adjustments in the November market; rental prices were only slightly below recent record highs, demand year-to-date was still 15% higher than 2021, and supply was still 33% lower year on year.”