Private rental prices paid by tenants in the UK rose by 6.2% in the 12 months to January 2024, unchanged for the second consecutive month, according to the Office for National Statistics (ONS).
The report revealed that annual private rental prices increased by 6.1% in England, 7.0% in Wales and 6.8% in Scotland.
Within England, London had the highest annual percentage change in private rental prices in the 12 months to January 2024, at 6.9%, while the North East saw the lowest, at 4.7%.
Reaction:
Justin Moy, managing director at EHF Mortgages:
“It does look like the upward pressure on rental prices is starting to cool a little, but the increase over the past 12 months is still well above inflation and grim news for tenants.
“One of the major contributory factors to rental increases has been the spike in mortgage rates, but now that we have seen some softening in buy-to-let rates in 2024, rents will hopefully stay flat or even edge down in the coming months.”
Riz Malik, founder and director at R3 Mortgages:
“Many landlords face increasing costs so it is not surprising they are passing those onto tenants through higher rents.
“How people can be expected to rent in London and save for a deposit for their first property baffles me. Tenants today are under the most phenomenal pressure.”
Craig Fish, director at Lodestone Mortgages & Protection:
“This is horrific news for those needing to rent, but it at least appears to be stabilising.
“Now we are starting to see rate cuts from lenders and improving rental stress test calculations, it’s possible that these numbers will improve gradually, bringing the increases closer to the rate of inflation.
“Landlords have been particularly hard hit over the past few years, and whilst they are looked at as the villain, people must remember that they are a vital part of the UK housing market, and most are very reasonable only increasing rents when absolutely necessary.”
Andrew Montlake, managing director at Coreco:
“High rental prices continue to cast a shadow over the housing market that the Government seem unwilling to recognise.
“Higher rents are a product of Government policy both in the taxation of landlords and the scarcity of properties.
“The private rental sector (PRS) is as important to the health of the housing market as first-time buyers and the availability of social housing.
“Without these parts all working in healthy unison it is no wonder that stock levels are low, prices are high and rental costs are stifling borrower’s ability to save for a deposit.
“Landlords, of which the vast majority are fair and decent, face a stark choice to keep increasing their rents in the wake of higher mortgage rates and changes in taxation policy, or sell up.
“Whilst a sell-off may be welcomed in some quarters it will cause as many problems as it solves with property to rent already at a premium.
“It is time for the Government to rethink its policy on landlords and stop treating them as enemies of the people.”
Akhil Mair, director at Our Mortgage Broker:
“The relentless climb in rental prices across the UK is a distressing trend that has been gaining momentum over the past decade.
“Tenants are having a tough time of it, and then some.
“As the gap widens between what people earn and what they must pay for a roof over their head, the basic right to affordable housing becomes ever more important.
“It’s imperative that policymakers address our housing crisis with urgent and concrete measures to ensure that housing remains accessible to all, regardless of income level or geographic location.”
