UK rents rise for fourth consecutive month

Posted on Wednesday, May 8, 2024

Rents have risen by 1.6% in one month, the fourth consecutive increase, the HomeLet Rental Index has revealed. 

Across the country, rent has increased by 7.9% in the last year alone, and by 35.8% since pre-pandemic rates.

The increases mean UK renters can now expect to pay a third of their wages (33.3%) in rent, with Londoners paying out nearly two-fifths of theirs (39.1%).

Andy Halstead, chief executive of HomeLet and Let Alliance, said: “A trajectory like this could see rental prices increase by almost 20% over the next 12 months, which would be the equivalent of over £250 more being paid out each month by the average UK tenant.

“This puts the country in a clear ‘cost of renting crisis’ and the government must act to provide landlords and tenants with the clarity they so desperately need.”

The cost of renting rose in every region barring East Midlands, with price hikes ranging between 0.4% in the South West, up to 2.9% in the North East and as much as 3.1% in London.

The news comes after the Renters (Reform) Bill recently passed a long-awaited third reading in the House of Commons before moving on to the House of Lords for consideration.

Halstead: “Over the course of the last five years, since the scrapping of Section 21 notices was first mooted by the government, the PRS has become increasingly more chaotic.

“While this is just one issue among many that fuels the chaos, ministers need to understand that uncertainty and delays to important legislation like the Renters (Reform) Bill create uncertainty. That leads to landlord churn and market volatility.

“Figures from HMRC show 139,000 taxpayers reporting 151,000 disposals of residential property in the 2022/23 tax year, amassing a total liability of £1.8 billion. This is much larger than two years previously.

“This has reduced the available rental stock and driven up rents as more renters compete for fewer rental properties. Until a clear date for the abolition of Section 21 notices is confirmed, many more landlords are likely to lose patience and sell up altogether. This will only inflate rental prices further – a situation the country can scarcely afford.”

Via @PropertyWire