Tenants are being hit by increasing rents, with private rental prices paid in the UK jumping by 4.7% in the 12 months to February 2023, up from 4.4% in the 12 months to January 2023, according to the Office for National Statistics.
It is the largest annual percentage change since the data series began in January 2016.
Looking at it by nation, annual private rental prices rose by 4.5% in England, 4.2% in Wales and 4.9% in Scotland in the year to February 2023.
Within England, the East Midlands saw the highest annual percentage change in private rental prices in the 12 months to February 2023, 4.9 per cent, while the West Midlands saw the lowest at 4 per cent
Carl Howard, group chief executive officer at Andrews, commented: “This record-breaking annual rental price rise of 4.7% speaks to the strong competition for new lets, as well as the shortage of supply.”
“The current mismatch between population growth and housebuilding is continuing to stoke demand for rental properties, particularly in cities and commuter hubs.”
“Another big factor has been the growing pressure on landlords, hit by the spiralling cost of living and increased mortgage rates — a legacy of the autumn budget. With double-digit inflation continuing to lift their costs across the board, many buy-to-let owners are struggling to justify holding onto investment properties.
“Government legislation and some clumsy ‘us versus them’ rhetoric, particularly around the planned strengthening of renters’ rights, has also helped drive a good number of smaller landlords out of the market.”
“This exodus must be halted — and more rental properties brought to market — or prices will keep on rising. In the meantime let’s hope the Punch and Judy politics of the private sector can be replaced with something far more constructive, for landlords and tenants alike.”
London’s annual percentage change in private rental prices was 4.6%. “This is the strongest annual percentage change in London since January 2013,” the ONS said.
Reflecting on rental prices in the capital, Jack Reid, founder of Orlando Reid, said: “Professionals have returned to their London offices at pre-pandemic numbers. Whether back in the office full-time or working from home on a hybrid basis, many are finding it more difficult financially to save for a deposit to purchase a property, because once again they need to factor in commuting on top of a rise in the cost of living.”
“Demand has also spiked with more of London’s workforce back in the capital and looking for a suitable rental home post pandemic, increasing the volume of tenants in the housing sector,” he added.
Average asking rents in London have hit a record £2,470 per calendar month amid strong competition for properties in the capital, according to Foxtons.
Surge in rents reflects ‘how intense the imbalance is between supply and demand’
Comments (2)
Thank you the Government. Thank you Shelter. Thank you Councils, thank you Generation Rant for reducing the supply of rental housing you are achieving that which you have set out to do by driving out investment in the PRS. I really feel sorry for the vast majority of excellent Tenants who will now suffer the consquencies of your policies. WELL DONE. You will all no doubt sleep well in your beds with your high salaries whilst others have to resort to cardboard boxes. Those tenants who think the aforementioned organisations have helped; think again.
11 Landlords in the last two weeks wanting to regain possession of their properties. Staggering amount. 11 notices issued in a fortnight. Tenants coming to the end of a fixed period or on periodic tenancies must be shaking in their boots
Rents rising phenomenally, never seen anything like it in 25 years. Demand through the roof against a backdrop of Landlords wanting out due to financial pressures, proposed rental reforms, no new buy-to-let investors…. Have to feel for tenants at the moment. Serious imbalance needs addressing and quick