News

Average UK rents rise at highest rate since the 2008 financial crisis to a 14-year high of £995



Rents have risen at their fastest rate since the global financial crisis, even as tenants are coming under increased pressure due to the cost of living crisis, data show.

The average cost of renting a flat in the UK has grown by 11 per cent in the last quarter, the highest rate recorded since 2008, according to data compiled by Zoopla.

It means the average monthly rent is up to £995 for the first quarter of 2022, equivalent to an £88 a month increase since the start of the pandemic.

Even more of a renter’s income is being spent on their rent as a result. According to Zoopla’s analysis, the typical single-income household in London is spending 52 per cent of its monthly incomings on rent.

It estimates that a new let agreed for the average rental property in London will cost more than £20,000 in rent over the next 12 months.

Across the UK, rent accounts for over a third of gross income (37 per cent) for a single earner. Around a third of renters live at home alone, according to Government figures.

ONS data published in February found that private rents are rising at their fastest rate in five years.

More from Property and Mortgages

Zoopla also found that, with rents being hiked and tenants facing a higher cost of living, renters are staying in their properties for longer periods of time. The average tenancy stands at 75 weeks in the last quarter, up from 51 weeks at the start of 2017.

Similar data from Rightmove found that 18 per cent of landlords say their tenants are staying longer than last year.

The main driver behind the steep increase in rents is that there is high demand for properties but not enough supply, a trend that is “more pronounced” in city centres, said Gráinne Gilmore, Zoopla’s head of research.

“Affordability considerations will also start to put a limit on further rental growth although this may occur at different times depending on location,” she added.

“Rents are likely to continue rising for longer in areas which have the most constrained stock levels – currently London, Scotland and the South West.” 

The data show that the most affordable places to rent include Great Yarmouth, South Somerset and North East Lincolnshire, where average rents account for just 15 per cent of the average joint gross income.

In London, the most affordable area is Bromley.

It comes as the UK grapples with a cost of living crisis that has sent energy bills, food prices and fuel costs rising rapidly.

Source link

Leave a Reply

Your email address will not be published.