The UK’s private rented sector (PRS) has experienced another year of increasing rents, with the latest figures from the UK Office for National Statistics (ONS) revealing a 9% rise in average rents in the 12 months to December. While this represents a slight dip from November’s 9.1% increase, renters continue to face significant financial pressures.
The data highlights notable regional differences in rent inflation:
England: Average rents climbed to £1,369, reflecting a 9.2% year-on-year increase.
Wales: Rents rose by 8.5%, bringing the average to £777.
Scotland: A 6.9% increase brought the average rent to £991.
Northern Ireland: As of October 2024, rents had risen by 8.6%.
Within England, the disparities were particularly pronounced:
London: Recorded the highest rent inflation at 11.5%.
Yorkshire and The Humber: Registered the lowest growth, with rents increasing by 5.4%.
The relentless rise in rents is pushing many renters to their limits. Sarah Coles, head of personal finance at Hargreaves Lansdown, described the situation as “more rent rise misery,” with affordability becoming a major concern for households already struggling to save.
According to Coles, “The slight easing in the rate of increases offers little comfort to those facing a 9% hike in housing costs. For many, the hope of homeownership remains a distant dream due to the strain of high rental expenses.”
Nathan Emerson, chief executive of Propertymark, emphasised the ongoing imbalance in the rental market. “We’ve seen the average cost of renting rise by more than £100 per month for many. The competition remains fierce, with an average of seven people vying for each rental property advertised.”
Emerson called for government intervention to boost the supply of rental homes, advocating for measures that support both tenants and landlords. “A fair and sustainable approach is crucial, particularly as the UK population continues to grow, reaching nearly 70 million.”
Jeremy Leaf, a North London estate agent and former RICS residential chairman, noted that while the pace of rent increases has remained steady, affordability is becoming a barrier.
“We expect rents to soften over time as affordability pressures mount. In some cases, we’re already seeing reductions compared to the previous year for similar properties,” he added.
On the property sales front, the ONS reported a 3.3% increase in the average UK house price in the year to November 2024, bringing the average to £290,000. This marks an acceleration from October’s 3% growth.
Regionally, house price growth varied:
England: Up by 3% to £306,000.
Wales: Increased by 3%, reaching £219,000.
Scotland: Recorded the highest growth at 4.7%, with the average price at £195,000.
Whether you’re a tenant, landlord, or prospective homebuyer, navigating the complexities of the UK property market can be challenging. At Value Invest, we’re here to guide you through the process. From understanding market trends to securing the best investment opportunities, our team is committed to helping you achieve your real estate goals.
At Value Invest, we specialise in helping buyers and investors navigate the complexities of the real estate market. Whether you’re looking to buy, sell, or invest, our expert team can provide you with the guidance you need to make informed decisions. Get in touch with us today to explore the latest opportunities and stay ahead of the curve in this dynamic market.
Ready to make your move? Contact us today to explore your investment options and secure your next property.
Investing in the UK property market requires thorough research to make sure you’re investing in the right areas, trust in the developers, and patience until completion. With the help of our expert team in Value Invest, we can guide your way to wealth accumulation.
Value invest identifies exceptional properties, pools together the resources of individual investors and purchases properties at a discounted prices:
Continue reading interesting articles:
© 2024 VALUE INVEST ALL RIGHTS RESERVED
© 2024 VALUE INVEST
ALL RIGHTS RESERVED
