Rents rise at the quickest pace since 2016

Rents rise at the quickest pace since 2016

0:10 AM, 20th July 2023, About 11 months ago 1

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The UK’s renters have seen average rent prices rocket by 5.1% in the year to June, the highest annual increase since the records began in January 2016.

The rise was even steeper in Wales and Scotland, where rents jumped by 6.7% and 6.2% respectively.

And. according to the latest data from the Office for National Statistics (ONS), house price growth is slowing down with a 1.9% rise in the year to May.

Aimee North, head of housing market indices at the ONS, said: “UK rental prices increased again, with the highest annual inflation since records began in 2016.”

She added: “UK annual house price inflation slowed again in May for the seventh consecutive month, prices are now £7,000 below the recent peak in September 2022.”

The cost of renting a home

The ONS data also shows that the cost of renting a home in Wales grew by 5.8%, 5.5% in Scotland and rents rose by 5.1% in England.

However, England’s biggest rent increase was seen in the West Midlands at 5.4%, while rents in London rose by 5.3%.

Tenants in the North East had rents increase by 4.4%.

‘Growing number of renters looking for a home’

Nathan Emerson, the chief executive of Propertymark, said: “Our members continue to tell us of the huge disparity in the number of properties available to rent and the growing number of renters looking for a home, ultimately continuing to put pressure on rent prices.

“UK Governments need to stop tinkering around the edges of the problem and look to adequately incentivise the provision of desperately needed homes in the private rented sector.”

‘Continued lack of supply within the rental market’

Emma Cox, the managing director of real estate at Shawbrook, said: “The continued lack of supply within the rental market is encouraging seasoned professional landlords to expand their rental portfolios and consider new investment strategies.

“Additionally, there is a growing interest in commercial property financing, indicating that investors are exploring further diversification strategies beyond residential properties.”


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Comments

northern landlord

11:02 AM, 20th July 2023, About 11 months ago

Government policy is making housing unaffordable resulting in a” Growing number of "renters looking for a home” but Government policy on the PRS has resulted in a “Continued lack of supply within the rental market’ which in turn has made “ Rents rise at the quickest pace since 2016” So we have unaffordable private housing soon to be joined by unaffordable rented housing as the PRS becomes less and less attractive, landlords bail out and are not replaced as investors seeing the writing on the wall are investing their money elsewhere. Are we in the last days of the traditional PRS? Will homelessness and overcrowded homes be a growing problem or will we become a nation of corporate HMOs working to minimal standards?

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