Average monthly private rents in the UK increased by 3.7 per cent to £1,393 in the 12 months to July, according to new figures from the Office for National Statistics (ONS). The annual growth rate rose from 3.3 per cent in the 12 months to June, as tenants continue to face what industry experts describe as 'extremely steep' costs.
House price growth slowed to two per cent over the same period, with the average UK house price reaching £272,000 in the 12 months to June, down from three per cent growth in the 12 months to May.
Regional Rent Variations
In England, average rents increased to £1,451, representing a 3.8 per cent annual rise. Wales saw rents climb to £843 (4.5 per cent), while Scotland recorded average rents of £1,016 (1.7 per cent) in the 12 months to July. In Northern Ireland, average rents increased to £875 (2.3 per cent) in the 12 months to May.
Within England, the North East experienced the highest private rent annual inflation at 6.3 per cent, while the South East recorded the lowest at 2.9 per cent in the 12 months to July.
House Price Growth Slows
Average house prices increased to £293,000 (1.8 per cent) in England, £213,000 (1.8 per cent) in Wales, and £195,000 (2.3 per cent) in Scotland in the 12 months to June.
Babek Ismayil, CEO at homebuying platform OneDome, said: 'Tenants in many areas of the country are already facing extremely steep rents, and they continue to edge higher.'
Ismayil added: 'If more landlords decide to leave the sector and rental supply falls, that could put further upward pressure on rents. For renters hoping to move into homeownership, higher monthly housing costs can make it harder to save and take that next step.'
Renters' Rights Act Impact
Rupert Collingwood, Founder at The London Broker, commented on the impact of the Renters' Rights Act (RRA), saying: 'It is increasingly acknowledged the Renters' Rights Act (RRA) may be delivering some well signposted consequences, which were only 'unexpected' to those in government who wrote the legislation.'
Collingwood added: 'Landlords are leaving the market, and those who remain are putting their prices up not only due to demand but also because the RRA stopped landlords taking offers over their asking price.'
