0:01 AM, 17th October 2024, About 2 months ago
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Rents in the private rented sector (PRS) rose by 8.4% in the 12 months to September, official data reveals.
The figures from the Office for National Statistics (ONS) show that the rate is the same as recorded in August.
In England, average rents rose 8.5% to £1,336, while in Wales there was a 8.3% increase to £760.
In Scotland, rents grew 7.2% to £973, and in Northern Ireland, rents went up by 9.5% to July.
London continued to have the highest rent inflation in England, with a 9.8% increase.
The South West and Yorkshire and the Humber regions had the lowest increases at 6.3%.
The ONS data also reveals that average house prices in the UK increased by 2.8% to £293,000 in the year to August – that’s up from 1.8% in the 12 months to July.
Average house prices increased in England are £310,000 (2.3%), in Wales the average is £223,000 (3.5%), and in Scotland prices rose to £200,000 (5.4%).
Sarah Coles, the head of personal finance at Hargreaves Lansdown, said: “Budget threats helped rents continue their relentless rise last month, reaching a punishing average of £1,336.
“And that’s just for those who are able to find a place to live.
“Given the continued exodus of landlords, renters face the double misery of fighting over the scraps and then paying a fortune for them.”
She adds: “There’s nothing new in the trend for landlords to leave the market, but the Budget has created a new impetus.
“Fears of changes to capital gains tax in the Budget are driving plenty of sales.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, 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, the lettings manager at estate agency Antony Roberts, said: “There is more choice of rental property for tenants with an increase in stock coming to market.
“The supply and demand balance still swings in favour of the landlord, but tenants are now afforded more choice.
“We are seeing a strong steady flow of applicants looking to rent, which means landlords are enjoying little-to-no void periods.”
Gareth Atkins, the managing director of lettings at Foxtons, said: “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.”
