The PRS saw an annual rent rise of 4.9% in March

The UK’s private rents rose in the year to March by 4.9% – which is still below the rate of inflation.

The Office for National Statistics (ONS) says the annual figure is a slight increase on February’s 4.8%.

The average rent in England grew by 4.6%, in Wales it rose by 4.4%, but Scotland saw the largest annual rise at 5.1%.

For landlords in the East Midlands, they saw the highest year-to-date percentage change in rents at 5.1%, while landlords in the South East saw the lowest rise at 4.2%.

In London, the annual percentage change in private rental sector prices was 4.8% – that’s above the average for England and is the highest annual rate seen since December 2012.

‘Show the same strength as last year’s first quarter’

Speaking about the ONS rental data, Gareth Atkins, the managing director of lettings at Foxton’s, said: “At the beginning of the first quarter, we said the market would show the same strength as last year’s first quarter, but it would climb through 2023 at a much steadier rate, requiring renters to remain vigilant as stock comes to the market out of season.

“At the close of the first quarter, this prediction is right on track.”

He adds: “Supply and demand have hit similar levels to 2022, and we’re beginning to see savvy renters register their search in advance of the summer rush.”

Helping to ease rental affordability in the capital

Foxtons says that demand remains high as an increase in new instructions is helping to ease rental affordability in the capital.

The firm’s lettings market index for March reveals that the number of properties coming to market grew by 19% compared to February.

Tenant demand rose by 4% from February to March and remains at similar levels to March 2022.

Foxton’s says the average weekly rent in March fell by 4% compared to February – but it remains 14% higher year-to-date compared to 2022.

The firm says the introduction of the Elizabeth Line might be boosting the level of competition, opening up opportunities for renters wanting to commute from a west London home into central London offices.

Third ever double-digit rent increase

Estate and letting agents Hamptons also say that rents grew across Great Britain in March with the third ever double-digit rent increase since the firm started its lettings index nearly 10 years ago.

In March, the average rent for a new tenancy was £1,236 – that’s 10.8% or £121pcm higher than it was in March 2022.

Rent rises in London continue to lead the way with average rents rising 16.2%, faster than anywhere else.

Rents in inner London rose by 18.5% over the last year to reach £3,046, with rents surpassing the £3,000 mark for just the second month running.

Meanwhile, the 15.6% growth posted in outer London marks the fastest annual increase on record and takes average rents there to £2,013.

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