Homedirect loanUK rents rise 3% in June, London lags: ONS

UK rents rise 3% in June, London lags: ONS

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Private rents in the UK lifted by 3% in the year to June, the largest annual growth rate since the Office for National Statistics began collecting this data in 2016.

This is a rise of 0.2% on the year to May, says the data body’s Index of Private Housing Rental Prices, UK: June 2022.

The report comes as the ONS also says that inflation hit 9.4% in June, setting a fresh 40-year record high, driven by rising fuel and food prices.

The data body’s rent report says that growth in UK private rents remained broadly flat between November 2019 and the end of 2020.

But it says: “The beginning of 2021 saw a slowdown in rental price growth, which was driven by prices in London. This may have been a reflection of a decrease in demand because of the coronavirus pandemic.

“For example, remote working shifted housing preferences to mean workers no longer needed to live close to offices. Private rental price growth in the UK increased during the latter part of 2021, with widespread annual growth across all regions, except for London.

“This growth has continued to increase in recent months, with an increase in rental price growth in London since the start of 2022.”

Across the country, rents grew by 2.9% in England, 1.9% in Wales and 3.5% in Scotland in the 12 months to June.

The East Midlands saw the highest annual growth in private rental prices, at 4.3%, while London saw the lowest, at 1.7%.

The data body adds, in the year to June UK rents, excluding London, lifted by 3.6%, up from a rise of 3.4% in May.

Landbay managing director, intermediaries Paul Brett says: “Rents have been steadily rising over the past year and have hit a record growth rate of 3%. This reflects tenant demand which remains high while supply in some parts of the country is particularly low.

“The private rented sector is an essential part of the housing mix and we need more rental properties to be available. Despite reports of landlords selling up, many are expanding their portfolios and new, especially younger investors, are coming into the market.”

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