Private rents across the UK have surged by 8.6 percent over the past year, exacerbating the financial strain on tenants already grappling with rising living costs. In England alone, the average rent has shot up by £103, a significant 8.6 percent increase, bringing the figure to £1,310, as per the latest data from the Office for National Statistics (ONS).
Scotland saw its average monthly rent climb by 8.4 percent over the 12 months leading to June to £959, while in Wales, tenants are now paying an average of £743, up by 8.2 percent. However, these countrywide figures mask the stark variations found locally. For instance, Kensington & Chelsea, a prime London borough, commands an eye-watering average monthly rent of £3,406, whereas Dumfries and Galloway in Scotland averages at just £481.
Stepping outside the capital, Elmbridge in Surrey, encompassing areas such as Esher and Weybridge, boasted the highest average rent in June 2024 at £1,797 per month. Across Great Britain, detached homes fetched the highest average private rent in June 2024 at £1,469, while flats and maisonettes were at the lower end of the scale with an average of £1,236.
The ONS commented on the trend, stating: “Average UK private rents increased by 8.6 percent in the 12 months to June 2024. This was down from 8.7 percent in the 12 months to May 2024, and below the record-high annual rise of 9.2 percent in March 2024.”
Looking to the future, the Royal Institution of Chartered Surveyors has indicated that the annual growth rate in rent could rise due to increased demand coupled with a decrease in available rental properties. The report noted: “RICS reported that tenant demand increased during June, but landlord instructions net balance decreased, pointing to a renewed decline in rental listings, in their June 2024 UK Residential Market Survey.”
Recent data shows a notable trend of buy-to-let landlords exiting the market or reducing their portfolios, driven by escalating costs. Industry spokespeople have expressed concern over Labour’s proposal to end no-fault evictions, limit rent increases, and enhance tenant rights and protections, arguing that these measures make it increasingly challenging and costly to be a landlord.
Nathan Emerson, CEO of Propertymark, which represents letting agents, commented: “Whilst Propertymark supports renters having firm rights to challenge unfair practice, any new legislation must strike a fairness for all involved. Ultimately, there is a concerning lack of housing stock within the marketplace, and there needs to be clear pathways and support for investment to help boost supply and provide choice for prospective tenants when it comes to choosing a new home.”
Sam Reynolds, the CEO of Zero Deposit, commented: “Much of the noise leading up to the election was predictably focussed on the housing market, however, with rents continuing to climb, it’s imperative our new Government gives the current rental crisis the focus it deserves.”
“We need more rental homes and ultimately, it is what they’ll be judged on as the single most important initiative to solve the demand-supply imbalance and the considerable rental cost inflation. Fundamentally, we need more rental properties to control spiralling costs.”