0:01 AM, 19th December 2024, About 3 hours ago
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Private rents in the UK have risen by 9.1% in the 12 months to November – that’s up from 8.7% in October but lower than March’s record figure of 9.2%.
According to the latest figures from the Office for National Statistics (ONS), rent rises were seen across all regions of the UK, with England seeing the largest increase at 9.3%.
Wales followed with an 8% increase, Scotland saw a 6.5% rise and Northern Ireland experienced a 9% increase.
Within England, London saw the highest rental inflation at 11.6%, while Yorkshire and The Humber had the lowest at 5.7%.
The ONS says: “Average monthly private rents vary across local authorities in England and Wales, and broad rental market areas in Scotland.
“In November 2024, the average rent was highest in Kensington and Chelsea, London (£3,520) and lowest in Dumfries and Galloway, Scotland (£485).
“Excluding London, the local area with the highest average rent in November was Elmbridge, South East (£1,856).”
The ONS also reveals that the average private rent is highest for detached properties at £1,515 and lowest for flats and maisonettes on £1,288.
Also, the average private rent was highest for properties with four or more bedrooms (£2,003) and lowest for properties with one bedroom (£1,060).
The data also shows that the UK’s house prices continue to rise, with the average home now costing £292,000 – a 3.4% increase in the past year.
This marks an acceleration from the 2.8% annual growth seen in September.
England saw the largest increase in average house prices, reaching £309,000, while Wales and Scotland experienced growth of 4% and 5.5% respectively.
Nathan Emerson, Propertymark’s chief executive, said: “The lettings market continues to prove challenging to those who rent. Ultimately the sector is about to undergo one of the biggest evolutions in over 30 years with a raft of new legislation proposed that will fundamentally alter the viability for some landlords to even operate.
“It is crucial there is sensible support in situ that encourages long term investment in rental properties and that both tenants and landlords are treated with equal fairness to keep an objective oversight on a system that is increasingly coming under additional pressure to keep pace with ever increasing demand.”
Gareth Atkins, the managing director of lettings at Foxtons, said: “Rental demand was steady and persistent in 2024, even as the number of listings increased – reaching 7% higher than 2023 (year to date) by the end of November. So, although this market had more of the traditional seasonality than we’ve seen in recent years, it was still highly competitive throughout, with an average of 15 renters per new listing year to date.
“As we step into 2025, the lessons of 2024 are clear: success requires not just property, but proactive, intelligent market engagement for buyers, sellers and landlords alike.”
Sarah Coles, the head of personal finance at Hargreaves Lansdown, said: “Rapid rent rises will have sent renters into a cold sweat, panicking about how on earth they can afford to stretch their budget far enough to make ends meet.
“To make matters worse, it’s incredibly difficult to see when this rapid rise in rents will come to an end.
“While the latest RICS survey showed tenant demand relatively flat, the number of properties available continued to fall, so rents will keep rising. The soaring cost of rent is why private renters spend 39% of their monthly budget keeping a roof above their head – compared to those with mortgages who spend 19%.”
Ross Turrell, the commercial director at CHL Mortgages, said: “Today’s figures will provide investors with a little more festive cheer. In the face of challenging economic and political headwinds, the steady house price growth seen throughout 2024 highlights the enduring resilience of bricks-and-mortar investments in the UK.
“These figures reflect market activity during the uncertain lead-up to the Autumn Budget, so the fact that prices still grew should drive greater confidence and higher activity levels in the coming weeks.”
