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According to Rightmove, average rents outside London hit a new high of £1,162 a month in the third quarter of this year, up 3.2 percent from the previous three-month period and 11 percent over the past year.
It is only the third time that rents have risen by more than 3 percent in a quarter. Rents rose even faster in the second quarter of this year, by 3.5 percent over the three-month period.
In London, the average rent is now £2,343, up 3.8 percent in the past three months and 16.1 percent in a year.
Cost increase: renting costs people more out of their pay package as the cost of living continues to put pressure on finances
Demand for rental housing outstrips supply across the country, although outside the capital, the number of available housing has increased by 9 percent. In the same period, however, demand increased by 20 percent.
Rightmove said the pace of growth was driven by the severe shortage of available rental housing, combined with extremely high demand that continues to exceed last year’s levels in every region of the UK.
The rise in rents is putting additional pressure on tenants against the background of 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.
Tim Bannister, Rightmove’s director of real estate science, said: “It’s a real challenge for tenants right now because there simply aren’t enough homes for rent to meet people’s demand.
“To get to the market, we need a significant addition of housing to balance the balance. Those looking to rent a smaller home in the coming months may face some additional competition from potential new buyers, whose purchase plans have been stalled for the time being due to the sudden rise in mortgage interest rates, and are now looking to rent.”
Citizens Advice, a nonprofit that provides free financial advice, has reported a significant increase this year in the number of people it has helped with homeless issues.
By the end of September, the organization had helped more people with homelessness problems than at the same point in the previous three years.
Get help: Citizens Advice has helped more people with homelessness problems this year than at the same point in the last three years
Given the rise in rents, last week’s confirmation from outgoing Prime Minister Liz Truss that the government is sticking to its promise to abolish landlords’ right to eviction was welcomed by many.
Osama Bhutta, campaign manager at the Shelter charity, greeted the news at the time, saying: “Private rent is completely broken – anything less than large-scale reform will not give private tenants the security and stability they need.
“Now the government must also stand by its word to outlaw discrimination against low-income families and ensure private rental housing is decent and safe.”
However, with the shocking resignation of Liz Truss on Thursday, the country faces a new leadership election and it is unclear what policies will survive under the next government. She had also confirmed that she plans to drop the conservative manifesto’s commitment to build 300,000 homes a year by the mid-2020s.
In September, Shelter announced that one in seven tenants saw rents rise in August. Furthermore, the data showed that one in three (2.6 million adults) spend at least half of their household income on rent, while nearly 2.5 million tenants are left behind or are constantly struggling to pay their rent – a figure that has since gone down. time has increased by 45 percent. Apr 2022.
Tenants forced into smaller houses to save money
The charity has highlighted the plight of Andrew, 38, who lives with his partner in a one-bedroom flat near Brighton and shares custody of his children from his previous marriage.
He works full time as an engineer. Recently, his landlord increased his rent by £155 a month, £100 more than he said they had agreed, making it unaffordable and forcing him to move out.
If my kids stay every weekend, I sleep on the couch, my partner sleeps on a camp bed and the kids sleep in our bed and a bunk bed in the bedroom
“On my budget, I could only afford a one-bedroom apartment nearby, so if my kids stay every weekend, I sleep on the couch, my partner sleeps in a camp bed, and the kids sleep in our bed and a bunk bed in the bedroom ‘, he says.
The trend towards downsizing to save money is reflected in the Rightmove data, which shows that studios have overtaken single-bed as the most in-demand type of flat for renters.
Agents suggest that overstretched budgets and the returning popularity of city centers are contributing to the shift.
There are now four times as many renters looking for a studio as there are studios available, up 71 percent from a year ago.
Rising: Rents rose 3.2% in the third quarter of the year, slightly lower than growth in the second, according to Rightmove
Regionally, South West Yorkshire & The Humber and Wales have seen the most new properties on the market, up 19 per cent, 12 per cent and 10 per cent respectively.
In London, average rents have risen to a record £2,343 per month, according to Rightmove. This brings the annual growth rate of demanded rent in the capital to 16.1 percent, the highest annual growth rate for any region ever.
Separate data from housing developer Pocket Living shows that more than a quarter of London renters (27 percent) are considering leaving the city next year due to cost of living.
More than half (54 percent) of renters considering leaving the capital say they don’t want to leave, but feel they have no choice.
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