Rental prices in the UK have seen record annual growth compared to last year, according to new statistics.
Renters across the country now pay an average of 9 per cent more, but regional differences vary widely.
The Office for National Statistics (ONS) said this was the highest annual percentage change since it started tracking rental data in 2015.
The average rent in the UK is currently £1,238, up £102 from 12 months ago. The 9% increase is significantly higher than the current inflation rate, which has recently fallen to 3.4%.
In the UK, more than a third of people are private renters, with an estimated 5 million households.
“These figures are shocking but not surprising,” Generation Rent chief executive Ben Twomey said. “We have been feeling the impact of sky-high rents and unaffordable rent increases since 2021 , we have reached the limit of what we can bear.
“As the cost of living crisis has significantly eased, the rental cost crisis continues to intensify.”
Here’s a breakdown of the areas most affected by rising rents:
City dwellers are particularly hard hit by rising rents, with London seeing the largest increases. In some areas of the capital, rents have increased by as much as 20%.
UK city rents to rise between 2023 and 2024
How much more will renters pay in Britain’s 10 biggest cities?
- Birmingham – from £973 to £825 (+8.3%)
- Manchester – from £1,054 to £1,184 (+12.3%)
- Leeds United – from £1,074, from £993 (+8.2%)
- Glasgow – from £1,056 to £1,191 (+12.8%)
- Southampton – from £1,015 to £1,112 (+9.5%)
- Liverpool – from £700 to £758 (+8.3%)
- Newcastle – from £972 to £928 (+7.3%)
- Nottingham – from £810 to £889 (9.8%)
- Sheffield – from £701 to £824 (+9.5%)
- Bristol – from £1734, from £1609 (+7.8%)
It’s a different story for house prices, which have fallen significantly since late 2022. Coupled with inflation unexpectedly falling to 3.4% in March, mortgages are expected to become even more affordable by 2024.
As landlord costs start to fall, that could mean a better deal for renters, too.
Jonathan Gordon, director of wealth management at IP Global, said: “Landlords are facing rising costs, which in turn are causing rents to rise for tenants. This creates an extremely difficult situation for renters in the UK because of wages Often cannot keep up with rent increases.
However, Mr Twomey believes renters are unlikely to see their monthly outgoings fall any time soon: “It’s not just because of rising costs for landlords – more than half of private rented properties don’t have a mortgage – so it’s clear that Landlords are raising rents simply because their tenants have no choice but to pay those prices.”
“The government needs to listen to tenants and take decisive action to curb soaring rents in the worst-hit areas.”
Are you affected by the issues in this story? Contact: albert.toth@independent.co.uk
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