Average private rents increased by 8.4% in the 12 months to September 2024, the same increase as in August 2024, data from the Office for National Statistics has revealed.
With demand from renters continuing to heavily outweigh supply, average rents increased to £1,336 (8.5%) in England, £760 (8.3%) in Wales, and £973 (7.2%) in Scotland, in the 12 months to September 2024.
In Northern Ireland, average rents increased by 9.5% in the 12 months to July 2024.
In England, rents inflation was highest in London (9.8%) and lowest in the South West and Yorkshire and The Humber (6.3%), in the 12 months to September 2024.
Jeremy Leaf, north London estate agent, said: “Interestingly rents are still rising strongly which shows demand continues to outpace supply but as we have also found in our offices there is an affordability ceiling which tenants are finding increasingly difficult to break.
“Unfortunately, too many good landlords are leaving the sector in response to concerns about increasing tax and regulatory issues. Prospects of an improvement in choice and substantial softening in rents therefore seems unlikely for the time being at least.”
Harriet Scanlan, lettings manager at Antony Roberts in SW London, says there is more choice of rental property for tenants with an increase in stock coming to market but the supply-demand imbalance “still swings in favour of the landlord” and that is placing upward pressure on rental values.
Scanlan said: “We are seeing a strong steady flow of applicants looking to rent, which means landlords are enjoying little-to-no void periods. Landlords are still achieving slightly higher rents year-on–year when reletting property to the same tenants, but not as steep as the increase in 2022/23.”
Gareth Atkins, managing director of lettings at Foxtons, added: “As the rental market begins to stabilise ahead of the winter months, we’re seeing key regional trends shaping the landscape. While overall demand in London saw a seasonal decline in September, due to longer tenancy timelines, areas like Central London saw a 12% increase in applicants per new instruction.”
Meanwhile, average house prices increased by 2.8% to £293,000 in the 12 months to August 2024 (provisional estimate); this annual growth rate is up from 1.8% in the 12 months to July 2024.
“Unfortunately, too many good landlords are leaving the sector in response to concerns about increasing tax and regulatory issues”
Based on what statistics, in a statistics heavy article?
We’re seeing roughtly the same number of landlords leave and join in 2024 as 2023. 2022 was a 10% loss to the bull sales market which was understandable, but we have 5% more managed properties in 2024 vs 2022 so what does that say?
Available rental properties are low due to FTBs remaining in PRS properties; struggling to buy due to high interest rates, struggling to save due to high rents and the cost of living crisis.
Good to read there is no CGT increase for second homes and BTL properties.
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