Average rents are rising way ahead of increases in wages with the average figure up 8.6 percent on last year, according to new official figures.
A shortage of homes means renters are fighting to get a roof over their head, with the result monthly rents are being bid upwards.
Such is the pressure that industry experts report there are typically nine applicants for every rental property that comes onto the market.
At the same time, landlords are pushing up rents to combat rising costs, including loan rates and requirements to improve properties to meet green energy standards.
Average monthly rents increased to £1,319 (8.6 percent) in England, £748 (7.9 percent) in Wales, and £965 (8.2 percent) in Scotland, in the 12 months to July 2024, according tof the Office for National Statistics.
Nathan Emerson, chief executive at Propertymark, which speaks for letting agents, said: “The rental market continues to feel the harsh reality of ongoing pressures on housing demand, which are outstripping current supply.
“This has a real-world effect on rental prices for consumers and that consequence is prices tend to be pushed further upwards.
“It is crucial the mismatch between supply and demand is addressed as a priority to help ease a current ‘nine applications per available property’ trend that we are witnessing.
“It’s an unhealthy situation and one that can only be solved by ensuring long term investment in a diverse mix of sustainable housing to keep pace with growing demand.”
Patricia McGirr, Founder at Repossession Rescue Network commented: “Real pain is being felt by tenants due to soaring rental costs.
“For those already teetering on the edge financially, this is more than just an increase, it’s a pressure cooker ready to explode.
“I see the human toll behind these numbers daily. Families are being squeezed from all sides.
“It’s a cruel irony that the roof over your head is becoming a financial burden too heavy to bear for many. This isn’t just an economic challenge – it’s a social crisis in the making.
“Behind every statistic is a family struggling to keep their home and landlords facing untenable costs. Recent figures showing landlord repossessions on the rise shed light on the difficulties being faced by many tenants.”
Soaring rents
Area Annual increase
London +9.7%
North West +9.5%
East Midlands +9.4%
West Midlands +9.0%
South East +7.8%
East of England +7.4%
South West +7.1%
Yorkshire/The Humber +7.0%
North East +6.1%
Scotland
Wales
* Source: Office for National Statistics
Daniel Hobbs, Managing Director at New Leaf Distribution, commented to say: “The real squeeze is on tenants, with average rents soaring by 8.6 percent year-on-year.
“This marks a persistent challenge for tenants across the country, particularly in London where rents have increased by almost 10 percent.”
Stephen Perkins, Managing Director at Yellow Brick Mortgages, warned: “Rents could remain high or even continue to increase due to demand outstripping supply. It’s incredibly tough for tenants right now.”
