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Tenants face average rent bill of £1,166 a month as strong inflation persists

  • 16/11/2023
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Tenants face average rent bill of £1,166 a month as strong inflation persists
Rents for new lets have increased on average by 10.1 per cent driving tenants’ housing costs up to £1,166 a month.

The double digit rental inflation means the average annual rental bill is nearly £1,300 higher than it was a year ago, standing at almost £14,000, compared to £12,700 last September.

This marks the 20th consecutive month that Zoopla has recorded year-on-year rents rising by more than 10 per cent.

High demand and a shortage of available homes to rent has pushed rents skyward but inflation in some regions has begun to slow.

Demand for rental properties is currently running at 27 per cent above the five-year average. Supply on the other hand has stagnated. The buy-to-let market has not grown in size since 2016.

Not all renters are experiencing double digit rental inflation, however.

For renters staying in their existing homes, year-on-year rises are much slower at 5.7 per cent, according to the Index of Rental Prices from the Office for National Statistics.


Scotland seeing largest rental increases

Scotland is seeing the biggest rises, at 12.8 per cent where rent controls are encouraging landlords to secure higher rents upfront. The average rent in Scotland stands at £753, £90 higher than a year ago.

Scotland’s rental inflation has started to moderate down from highs of 13.7 per cent in February, but it is expected to continue rising at above-average levels.

Rents are growing at the fastest rate in the cities of Edinburgh (16.6 per cent) and Glasgow (13.4 per cent) .

In more expensive areas, such as London and the South of England, rental inflation is starting to slow

In London, rental inflation has decreased from 17 per cent to 10.4 per cent over the past year.

Inner London boroughs were the first places to see rental inflation fall below 10 per cent. Outer London areas such as Harrow, Barking and Dagenham and Redbridge continue to register rental growth above 13.5 per cent – some of the highest increases in the UK.

The second and third largest slowdowns are recorded in Bristol and Brighton, where rental inflation fell to 8.8 per cent and 6.0 per cent respectively.

Rental inflation in the coastal communities of Hastings (6.7 per cent), Newport (8.9 per cent) and Blackpool (5.5 per cent) is also more aligned with earnings growth (8.5 per cent).

The reductions, said Zoopla, indicate landlords are becoming more realistic in pricing to take into consideration tenants’ cost-of-living struggles.

Zoopla expects rental inflation to remain above 9 per cent for the rest of the year as earnings growth remains strong and higher mortgage rates stop many renters from moving into home ownership.

It forecasts national rental growth of 5 to 6 per cent in 2024 with higher rent increases in cities likely.

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