UK private rental prices went up by 2.3% in the 12 months to February, representing the largest annual growth rate since December 2016.

The Index of Private Housing Rental Prices reveals that the East Midlands saw the highest growth (3.8%), while London saw the lowest (0.2%), which reflects a fall in demand caused by remote working shifting housing preferences, according to the Office of National Statistics (ONS). It also reflects an increase in supply as short-term lets have changed to long-term lets.

Regional rises

In England, prices grew by 2.1%, representing the highest 12-month growth rate since March 2017. When London is excluded, private rental prices increased by 3.1%, up from a rise of 3% in January, and the highest 12-month growth rate since the research began in 2006. Wales saw a 1.4% increase, in Scotland it was 2.6% and there was a 6.5% jump in Northern Ireland.

The ONS says growth in private rental prices paid by tenants in the UK had remained broadly flat between November 2019 and the end of 2020, while the start of 2021 saw a slowdown in rental price growth, which was driven by the market in London. Growth in private rental prices has increased since the latter part of 2021, with widespread annual growth across all regions, with the exception of the capital.

It adds that rental price increases recently reported by ARLA and supply challenges flagged up by the Royal Institution of Chartered Surveyors would take time to feed through to the index, which reflects price changes for all private rental properties rather than just newly advertised rental properties.

2 COMMENTS

  1. Rents are only ever increasing irrespective of affordability.
    Tenants will have to cut back on lifestyle choices………….like eating and heating!

    Rent comes FIRST.

    If not then bye bye tenant.

    Feckless tenants must realise that rent must be paid even if starving.

    If they DON’T then they will be homeless and starving…………their choice!

    LL intend to PROFIT whenever they can from MARKET conditions.

    Govt is effectively forcing LL out of long term lettings so the rents must increase for the reduced supply of that type of rental accommodation

    Tough for tenants but LL are social housing providers!!

    Life’s a bitch and then you die!!

  2. “Feckless tenants must realise that rent must be paid even if starving.”

    “If they DON’T then they will be homeless and starving…”
    Very Cynical Paul but Not quite right – if you starve- you’ll die so no need to pay rent. Dead people don’t pay rent!
    Yes I agree we have a broken housing system and Governemnt is doing its best to try to get PRS to fill the social housing gap but making a right hash of it and making things worse. Soon, most LL in the PRS will only let to professional tenants with high qualifications (Masters degree or higher) and proven long term employment in a profession unlikely to be ever made redundant and proven bank balance i.e. can afford to pay deposit upfront rather than use deposit replacement scheme.
    My view is, if a prospective tenant can’t afford to fund the deposit then they have no rainy day savings and will generally be a risky prospect as a tenant.

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