0:02 AM, 16th January 2025, About 3 hours ago
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Rents in the UK’s private rented sector (PRS) continued to climb in the year to December, though the pace of growth did slow, the Office for National Statistics (ONS) reveals.
Its data reveals that average rents have risen by 9% in the 12 months up to December – a slight drop from the 9.1% increase seen in November.
Regional variations in rent inflation were evident with England’s average rents climbing to £1,369, marking a 9.2% year-on-year increase.
Wales saw rents rise by 8.5% to £777, while Scotland experienced a 6.9% increase, bringing average rents to £991.
Data for Northern Ireland showed an 8.6% increase in average rents in the year to October 2024.
Within England, regional disparities were pronounced as London witnessed the highest rent inflation at 11.5%.
Yorkshire and The Humber recorded the lowest growth at 5.4%.
Sarah Coles, the head of personal finance at Hargreaves Lansdown, said: “Renters were engulfed by more rent rise misery in December, pushing more of them to the brink.
“The rate of rises has eased very slightly, but that will come as no comfort to anyone facing a 9% overnight hike in the cost of keeping a roof over their head.
“With no imminent solution to the imbalance in the rental market, for many people the only possible light at the end of the tunnel is the thought that one day they might own.”
She added: “This is easier said than done given the horrible cost of renting, which is why tenants have built less in savings than average.”
Propertymark’s chief executive, Nathan Emerson, said: “The lettings market has been an extremely challenging prospect for many across the last 12 months, and we have witnessed the average cost of renting a property across the UK increase by more than £100 per month for many.
“At the same time, we continue to witness an enormous mismatch between supply and demand of rental properties with an average of seven people chasing each potential property advertised.
“The UK government needs to concentrate on supporting both tenants and landlords by boosting the supply of new rental homes as it proceeds with the Renters’ Rights Bill.”
He added: “There must be a fair and workable balance for all involved, and one that encourages long-term investment in the rental sector as the population quickly approaches 70m people, up from 65m only 10 years back.”
Jeremy Leaf, a north London estate agent and a former RICS residential chairman, said: “There has not been much change in the pace of increase in rents for new lettings, which is underpinned by the continuing shortage of stock as landlords leave the sector when tenancies end in response to tax and imminent regulatory changes.
“That said, we do expect rents to soften in time as affordability is proving a particular barrier to hoped-for rent increases from landlords.
“We are certainly starting to see some reductions compared with this time last year when you compare similar properties, and the rents achieved.”
Meanwhile, the ONS reports that the average UK house price experienced a 3.3% increase in the 12 months up to November 2024, reaching £290,000.
This marks a rise from the 3% growth observed in the preceding month.
Regionally, house prices exhibited varying degrees of growth.
In England, the average price increased by 3% to £306,000 and Wales saw a similar 3.0% increase, bringing the average price to £219,000.
Scotland recorded the highest growth at 4.7%, with the average house price reaching £195,000.
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