Renters face record-breaking price hikes across the UK
The average rent for a new tenancy in the UK increased by 5.1% in the year to June - that's the highest annual rise since January 2016.
According to the latest figures from the Office for National Statistics (ONS), the situation is even worse for renters in Wales and Scotland, who faced rent increases of 6.7% and 6.2% respectively.
The ONS data also reveals that rent prices vary widely across different regions of England.
The West Midlands saw the biggest rent increase of 5.4%, followed by London with 5.3%. The North East had the lowest rent increase of 4.4%.
'Highest annual inflation since records began in 2016'
The head of housing market indices at the ONS, Aimee North, said: "UK rental prices increased again, with the highest annual inflation since records began in 2016."
Propertymark's chief executive, Nathan Emerson, said: "Our members continue to tell us of the huge disparity in the number of properties available to rent and the growing number of renters looking for a home, ultimately continuing to put pressure on rent prices.
"UK Governments need to stop tinkering around the edges of the problem and look to adequately incentivise the provision of desperately needed homes in the private rented sector."
Shawbrook's managing director of real estate, Emma Cox, said: "The continued lack of supply within the rental market is encouraging seasoned professional landlords to expand their rental portfolios and consider new investment strategies.”
Rents outside of London have hit a post-pandemic high
The ONS data is reflected by Rightmove which highlights that rents outside of the capital have now hit a post-pandemic high of £1,231.
That means rents are £300, or a third, more than they were in 2019.
But tenants in London are facing rocketing rents which are now £2,567 – that is £559 or 28% higher than 2019.
And even though rents are rising quickly, Rightmove says that landlords are being ‘deluged’ with applications for tenants desperate to find a home to rent.
The firm's report points out that 'many landlords are still being met with long queues of prospective tenants wanting to view and rent their property'.
'Rents for new tenants have risen at a rapid pace'
Rightmove's director of property science, Tim Bannister, said: "Average asking rents for new tenants have risen at a rapid pace since the pandemic reflecting the significant increase in demand, which is driven by a combination of factors including changed housing needs, such as some space to work from home.
"Landlords are currently having to navigate a multitude of challenges, but the data suggests it remains important to build long-term relationships with good tenants, with the majority of tenants choosing to stay in their property for longer than two years."
Simon Thompson, the managing director of Accommodation for Students, said: "It should come as no surprise that rents are rising quickly again - and landlords should be worried about affordability levels.
"However, with rising mortgage rates, landlord costs are increasing which means rents will, inevitably, rise too."
He added: "It's time to call again for Government action to help both landlords and tenants deal with what is an increasingly serious situation."
