One in five properties in England and Wales have seen rents rise 10% or more this year, according to latest data from the Office of National Statistics (ONS).
ONS researchers check rental prices on average every 12 months in England and nine months in Wales.
They found that rents were more likely to have been hiked in England and Wales since the last check than they were a year earlier (63% in England and 44% in Wales).
Rents had risen 11.3% in Wales and in England 9.7%. A year earlier it was 10.5% in Wales and 8.4% in England. Rents are most likely to have risen in London (77%), and least likely in the North West (42%). Rents were more likely to have been hiked in England and Wales since the last check than they were a year earlier (63% in England and 44% in Wales).
Sarah Coles, Head of Personal Finance, Hargreaves Lansdown said “We’ve seen devastating rent rises, as more landlords sell up and tenants multiply. The researchers check rents in Wales, on average, every nine months and in England every year. Since the last visit, almost two thirds of English landlords have hiked the rent and almost half of those in Wales have too. And those rises are eyewatering.”
“Where rents have risen, they’re up an average of more than 11% in Wales and almost 10% in England. In England and Wales, one in five properties have seen rents rise 10% or more since the last visit, and in London this rises to one in four.”
“In England, rents are most likely to have risen in London (77%), and least likely in the North West (42%). However, those rents that did rise in the North West did so more than anywhere else – at an average of 12.3%.”
“The rental market is getting squeezed on all sides. Landlords are under rising pressure. They face tougher rules that mean they pay more tax on the way in, as they go along and then when they sell. More rights for renters means landlord costs are increasing, which means they make less money. Meanwhile, those who have borrowed to invest are facing rocketing mortgage costs when they come to refinance. Some of those who stay in the rental market are switching to short-term lets and Airbnb for a better yield.”
“Tenants, meanwhile, are multiplying. The Royal Institution of Chartered Surveyors checks the number of people looking for rental property each month, and it has been rising relentlessly for months. A combination of more people renting later in life, more living alone, and an increased desire for self-contained space after the pandemic have all helped boost these numbers.”
“Making the leap from renting to buying is harder than ever. Rising rents make it harder to free up cash to save, while much higher house prices mean we’re aiming for much larger deposits. It means it’s worth getting all the support we can, whether that’s speaking to family about any help they can offer, or taking advantage of the Lifetime ISA so that the government boosts any money you can save by up to £1,000 a year.”