Average rental sales prices outside London hit a new high of £1,162 per month in the third quarter of this year, an increase of 3.2 per cent on the previous three-month period and 11 per cent on the previous quarter. last year, according to Rightmove.
It’s only the third time on record that rents have risen more than 3 percent in a quarter. Rents rose even faster in the second quarter of this year, rising 3.5 percent over the three-month period.
Within London, the typical rent is now £2,343, up 3.8 percent in the last three months and 16.1 percent in a year.
Rising costs: Rent is costing people more than their payment packages as the cost of living crisis continues to put pressure on finances
Demand for rental properties exceeds supply across the country, although outside the capital, the number of properties available to rent is up 9 percent. However, in the same period the demand increased by 20 percent.
Rightmove said the pace of growth was being driven by a severe shortage of available rental properties, combined with extremely high demand which continues to exceed last year’s levels in all regions of the UK.
Rising rental prices put additional pressure on renters amid a worsening cost of living crisis. In September, inflation rose again to a 40-year high of 10.1 percent, driven in part by food costs, which rose 14.6 percent in the 12 months to September.
Rightmove’s director of property science, Tim Bannister, said: ‘It’s a real challenge for renters at the moment, as there simply aren’t enough houses available to rent to meet the demand from people asking.
‘We will need a significant addition of homes coming on the market to even start to even the scales. Those looking to rent a smaller property in the coming months may find they are facing additional competition from prospective first-time buyers, whose plans to purchase have been thwarted for now due to the sudden increase in interest rates. mortgages, and are now looking to rent.
Citizens Advice, a nonprofit organization that provides free financial advice, has reported a significant increase in the number of people it has helped with homelessness issues this year.
By the end of September, the organization had helped more people with homelessness issues than at the same point in the previous three years.
Ask for help: Citizens Advice has helped more people with homelessness issues this year than at the same point in the last three years
Given the rises in rents, many welcomed confirmation last week from outgoing Prime Minister Liz Truss that the government remains committed to abolishing the right of landlords to issue no-fault evictions.
Osama Bhutta, campaign manager for the housing charity Shelter, greeted the news at the time saying: “Private tenancy is completely broken: anything short of a total overhaul will not give private tenants the security and stability they need”.
“Now the government must also stay true to its word to prohibit discrimination against low-income families and ensure that private rental housing is decent and safe.”
However, the surprise resignation of Liz Truss on Thursday leaves the country facing another leadership election and it is unclear which policies will survive under the next administration. She had also confirmed that she intended to abandon the Conservative manifesto commitment to build 300,000 homes a year by the mid-2020s.
In September, Shelter revealed that one in seven renters saw their rent increase in August. Additionally, the data highlighted that one in three (2.6 million adults) spend at least half of their household income on rent, while nearly 2.5 million renters are behind or have ongoing difficulties pay rent, a figure that has increased by 45 percent since then. April 2022.
Renters forced to live in smaller houses to save money
The charity has highlighted the plight of Andrew, 38, who lives in a one-bedroom flat near Brighton with his partner and shares custody of the children from his previous marriage.
He works full time as an engineer. His landlord recently increased the rent by £155 a month, £100 more than he says they had agreed, making it unaffordable and forcing him to move.
When my kids stay over every weekend, I sleep on the couch, my partner sleeps on a camp bed, and the kids sleep on our bed and bunk bed in the bedroom.
“With my budget I could only afford a one-bedroom flat in the area, so when my kids stay over every weekend I sleep on the sofa, my partner sleeps on a camp bed and the kids sleep on our bed and bunk bed. in the bedroom,’ he says.
The trend toward downsizing to save money is reflected in Rightmove data, which shows that studio apartments have overtaken one-bedrooms as the most in-demand apartment type by renters.
Agents suggest that tight budgets and the return to popularity of city centers are contributing to the change.
There are now four times as many renters looking for a studio as studios are available, an increase of 71 percent over the previous year.
Rising: Rents rose 3.2% in the third quarter of the year, slightly below growth in the second, according to Rightmove
Regionally, South West Yorkshire & The Humber, and Wales have seen the most new properties come to market, up 19 per cent, 12 per cent and 10 per cent respectively.
In London, average asking rents have risen to a record £2,343 per month, according to Rightmove. This puts the annual growth rate of requested rent in the capital at 16.1 percent, the highest annual growth rate recorded in any region.
Separate data from housing developer Pocket Living shows that more than a quarter of renters in London (27 per cent) are considering leaving the city next year due to the cost of living crisis.
More than half (54 percent) of renters considering moving out of the capital say they don’t want to leave, but feel they have no other choice.
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