Average rentals increased by 8.6% in June

Latest ONS, data has shown that the average private rents costs rose by 8.6% in the 12 months to June 2024, down from 8.7% in the 12 months to May 2024.

Average rents increased to £1,310 (8.6%) in England, £743 (8.2%) in Wales, and £959 (8.4%) in Scotland, in the 12 months to June 2024. In Northern Ireland, average rents increased by 10.3% in the 12 months to April 2024.

Commenting on the data, Lauren Peel, Director of Consumer Insights at Fair4All Finance said “There is precious little comfort for renters in today’s 2% inflation figure when private rents are still rising more than four times faster, after almost three years of ever-increasing rental hikes.

“Our research shows nearly one in three (30%) of the 20.3m adults living in financially vulnerable circumstances rely on the private rental sector for a place to call home, but many are finding their finances are getting close to breaking point.

“Rising housing costs are creating such a strain that, beyond paying off debt or unexpected expenses, covering rental or mortgage payments has become the most common reason why people look at taking out personal loans.

“A situation where people are taking on more borrowing just to keep a roof over their heads is clearly unsustainable. Almost one in three (32%) adults in financially vulnerable circumstances are currently worried about how to cover their rent or mortgage, with many expecting further increases to come as the year wears on.

“While the new Government and industry work together to rebalance the housing market and improve the nation’s financial wellbeing, we urge anyone who is struggling and not sure where to turn to speak to their local credit union or community development finance institution, rather than resorting to unregulated or illegal lenders.”

Matt Hartley, Director of Engagement at the Money Advice Trust, the charity behind National Debtline and Business Debtline said: “The Government is right to prioritise the Renters Rights Bill, which will ensure renters struggling with their finances are protected from unfair eviction.  

 “However, with 6.8 million people struggling to pay for essentials, we also need to see a clear plan to help people afford the basics, including improving support under Universal Credit.  

“And while the aim of approving affordability in the energy market longer-term is welcome, energy arrears levels are already at record highs. What’s needed now is support for people dealing with unmanageable energy debts through a Help to Repay scheme.” 

Separately average UK house prices increased by 2.2%, to £285,000 in the 12 months to May 2024 (provisional estimate), up from 1.3% (revised estimate) in the 12 months to April 2024. Average house prices increased in England to £302,000 (2.2%), in Wales to £216,000 (2.4%), and in Scotland to £191,000 (2.5%), in the 12 months to May 2024.