Rent increases this year have failed to keep pace with the general surge in the cost of living, but that could soon change, warns a specialist rental platform.
New market analysis from Ocasa suggests that the average rent bill in this country could reach as much as £2,270 per calendar month if prices rise in line with the hikes already being seen across other living costs.
The sharp rise in the price of energy has dominated headlines in recent months, while food inflation yesterday hit a record high of 14.7%.
The price of rent, however, has not yet matched the increasing costs seen across other areas of life. In the past year, the average cost of a month’s rent in the UK has increased by £98, rising from £1,061 per calendar month (pcm) in 2021 to £1,159pcm in 2022. This is an annual increase of 9.2%, and below the rate of inflation.
Jack Godby, sales and marketing director at Ocasa, commented: “Currently, and compared to other cost of living increases, tenants haven’t felt the squeeze quite as badly when it comes to their rental bill. However, it can only be a matter of time before this area of life also strains household finances as landlords raise rents in order to compensate for their own cost increases in both their personal and professional lives.
“Many households who are already bracing for a very harsh winter are likely to be under even more strain before Spring 2023 and we expect that the cost of renting may well be yet another household outgoing driving this financial strain.”
| Table shows the annual increase in the cost of rent, energy, and groceries alongside the rise of infaltion rates. Furthermore, it shows how much rent would now cost had it increased at hte same rate at hese other living costs | ||||||||||||
| Location | Ave Rent pm – Sep 2021 | Ave Rent pm – Sep 2022 | Annual change % | Annual change £ | Annual energy change % | Est ave Rent pm based on energy change £ | Annual grocery change % | Est ave Rent pm based on grocery change £ | Inflation rate % | Est ave Rent pm based on inflation change £ | ||
| East Midlands | £735 | £794 | 8.0% | £59 | 95.8% | £1,554 | 13.9% | £904 | 9.9% | £873 | ||
| East of England | £1,021 | £1,099 | 7.6% | £78 | 95.8% | £2,152 | 13.9% | £1,252 | 9.9% | £1,208 | ||
| London | £1,752 | £1,945 | 11.0% | £193 | 95.8% | £3,808 | 13.9% | £2,216 | 9.9% | £2,138 | ||
| North East | £578 | £609 | 5.4% | £31 | 95.8% | £1,192 | 13.9% | £694 | 9.9% | £669 | ||
| North West | £830 | £911 | 9.8% | £81 | 95.8% | £1,783 | 13.9% | £1,038 | 9.9% | £1,001 | ||
| South East | £1,139 | £1,237 | 8.6% | £98 | 95.8% | £2,422 | 13.9% | £1,409 | 9.9% | £1,359 | ||
| South West | £971 | £1,083 | 11.5% | £112 | 95.8% | £2,120 | 13.9% | £1,234 | 9.9% | £1,190 | ||
| West Midlands region | £797 | £858 | 7.7% | £61 | 95.8% | £1,680 | 13.9% | £977 | 9.9% | £943 | ||
| Yorkshire and the Humber | £725 | £785 | 8.3% | £60 | 95.8% | £1,537 | 13.9% | £894 | 9.9% | £863 | ||
| Wales | £734 | £794 | 8.2% | £60 | 95.8% | £1,554 | 13.9% | £904 | 9.9% | £873 | ||
| Scotland | £755 | £862 | 14.2% | £107 | 95.8% | £1,688 | 13.9% | £982 | 9.9% | £947 | ||
| Northern Ireland | £705 | £808 | 14.6% | £103 | 95.8% | £1,582 | 13.9% | £920 | 9.9% | £888 | ||
| United Kingdom | £1,061 | £1,159 | 9.2% | £98 | 95.8% | £2,269 | 13.9% | £1,320 | 9.9% | £1,274 | ||
A UK average rent of £2270!? Come on guys! Foxtons has recently just announced that their average rental income has hit around £2100pm- and that’s for a premium London agent. Rents have already soared with premium markets seeing a 10-15% uplift on pre-covid premiums whilst other regional markets have seen rents increase 20-30% in some areas! An increase of nearly 100% on the current UK average is crazy talk. I am also not sure who this information is meant to benefit? It will terrofy tenants, set unreal expectations with some landlords and fire up the antiPRS groups with more ammunition for their clickbait press releases. Blimey!
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I think its called ‘ publicity by scare-mongering ‘ but you have to look at those who publish it !
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