Rents continue to rise across the UK, with worst affected areas published

Aug 16, 2023

Rents across the UK have again increased in the year to July at more than double the rate of house price rises, official figures show.

Private rental prices rose by 5.3% with the greatest increase seen in Wales, according to data from the Office of National Statistics (ONS).

There, private rent prices grew 6.5%.

The rate has been steadily increasing for the past two years. The latest overall 5.3% UK figure is up from 5.2% in June but a low of 1.3% two years ago.

Scottish rents also grew faster than the UK average at a rate of 5.7%.

Analysis from Sky News has shown that renters are now the majority in the UK, followed by people who own their homes outright and then by mortgage holders.

Halifax becomes latest lender to cut mortgage rates

House prices continue to fall but market showing ‘resilience’

House prices ‘likely to fall further’ after biggest drop in 14 years

Within England, the areas worst impacted by rent increases were the West Midlands, Yorkshire and the Humber, and London where rents grew 5.5%. The North East saw the lowest growth in rent prices of 4.6%.

London’s annual percentage increase in rent prices reached its highest annual rate since the data began being collected by the ONS in January 2006.

A third of all UK rental expenditure is done in the capital, the ONS said.

Please use Chrome browser for a more accessible video player

It comes as low supply, more renters and fewer properties have continually pushed up prices for landlords and surveys suggest the trend will continue.

The ONS data is for private rents only and so excludes social housing.

House price statistics were also released by the ONS on Wednesday which showed a rise of 1.7% up to June, a slow down in rises from 1.8% in May.

The average house cost £288,000, up £5,000 on a year earlier but £5,000 below the recent peaks.

When broken down by country, average prices grew 1.9% to £306,000 in England, 0.6% to £213,000 in Wales and 2.7% to £174,000 in Northern Ireland. There was no change in Scotland where the average house price was £189,000.

Cost of living latest – ‘Worrying sign’ in inflation data, as minister says when it will return to 2%

Be the first to get Breaking News

Install the Sky News app for free

High interest rates have brought up the cost of mortgage payments meaning prospective buyers are put off by high asking prices.

Part of the slow down in rises can also be attributed to the spike in house prices seen in August 2022 when interest rates were low and stamp duty relief was offered as part of pandemic era supports.

Read Entire Article