Official government data shows that average private rents in the UK rose by 8.6% in the 12 months to July 2024, the same rate as in the previous year.
In detail, average rents reached £1,319 in England (an 8.6% increase), £748 in Wales (a 7.9% increase), and £965 in Scotland (an 8.2% increase) for the same period.
In England, London had the highest rent inflation at 9.7%. This rate remained steady from the previous year but was lower than the peak annual increase of 11.2% recorded in March 2024.
In July 2024, annual rent inflation was lowest in the North East at 6.1%, a new high for the region and an increase from 5.9% in June. London had the highest average rent at £2,114, while the North East had the lowest at £676.
Nathan Emerson, Chief Executive at Propertymark, says the rental market is struggling due to high demand exceeding supply, which is driving prices up. He stresses the need to address the supply-demand imbalance to improve the situation, noting that currently, there are nine applications for every available property. Emerson calls for increased long-term investment in diverse, sustainable housing to meet growing demand.
A spokesperson for Moneybox commented: “The ongoing rise in rental costs is a significant concern for many people aspiring to own a home. With the new government pledging to support wealth generation nationwide, there is some hope for potential homeowners in the UK. However, it is crucial for the industry to consider the long-term consequences of continually increasing rental costs.”
“These rising rents are eroding renters’ disposable income and making it increasingly difficult for them to save for a deposit on their future home. The impact on renters is substantial, as higher rents directly affect their ability to set aside money for future housing needs.”
“While we welcome the government’s ambitious goal of building 1.5 million new homes, it is clear that this alone will not solve the housing crisis. The challenges are multifaceted and require more comprehensive measures.”
“Addressing the issue of high rental costs with practical solutions is essential for supporting future homeowners. Saving for a deposit remains one of the biggest hurdles for many, and effective measures are needed now to help alleviate this significant barrier.”
Patricia McGirr, founder of Repossession Rescue Network, recently shared her concerns with the Newspage agency about the escalating rental costs and their impact on tenants. She explained, “Tenants across the country are feeling the real pain caused by rising rents. For many people who are already on the brink financially, this increase isn’t just a minor adjustment; it represents a severe strain that could have disastrous consequences. I witness the human toll behind these numbers on a daily basis, seeing families who are being squeezed from all directions.”
She continued, “As house prices continue to climb, they are pushing home ownership out of reach for many. At the same time, rents are rising to levels that are becoming increasingly unsustainable. This situation creates a cruel irony: having a roof over your head is becoming a financial burden too heavy for many to manage. It’s not merely an economic challenge; it’s a developing social crisis that needs urgent attention.”
McGirr also highlighted the broader implications of the current housing market. “The impact extends beyond just the numbers and affects every aspect of life for those struggling to keep up with their rent. Behind each statistic is a family grappling with the pressure of maintaining their home amidst rising costs, and landlords are also facing significant financial difficulties.”
She pointed out that the situation is becoming more serious. “Recent data showing an increase in landlord repossessions sheds light on the difficulties that many tenants are enduring. These figures indicate a growing trend that reflects the broader crisis affecting both renters and property owners.”
McGirr concluded, “The challenges in the housing market are not only financial but also deeply personal, affecting the stability and well-being of countless families. Addressing this crisis requires comprehensive measures to ensure that both renters and landlords can navigate these turbulent times without falling further into hardship.”
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