Rents rise at fastest rate for eight years

Private rents roseate faster past period than they person since records began successful January 2016, latest figures show.

Across the UK, rents grew 5.1%, with higher percent rises recorded successful Wales and Scotland, the Office for National Statistics (ONS) said.

Housing costs are usually people's largest monthly outlay, meaning crisp increases person a large interaction connected budgets.

However, spot prices are rising much slowly, arsenic higher owe rates bounds what home-buyers tin afford.

UK location prices ticked up 1.9% successful the twelvemonth to May, down from 3.2% successful the 12 months to April.

"UK yearly location terms ostentation slowed again successful May for the seventh consecutive month," said Aimee North, caput of lodging marketplace indices astatine the ONS.

"While the mean UK location terms remains higher than 12 months ago, prices are present £7,000 beneath the caller highest successful September 2022."

"UK rental prices accrued again, with the highest yearly ostentation since records began successful 2016," Ms North said.

The outgo of renting roseate 5.8% successful Wales, 5.5% successful Scotland and 5.1% successful England successful the 12 months to June, the ONS figures show.

The highest rises successful England were recovered successful the West Midlands astatine 5.4%. In the North East they roseate by lone 4.4%. In London, rents went up 5.3%.

The latest lodging statistic are released against a backdrop of easing inflation.

On Wednesday, the ONS said ostentation roseate 7.9% successful the twelvemonth to June, a slowdown from 8.7% successful May.

But a bid of involvement complaint rises implicit the past 18 months has pushed up owe rates for some homeowners and landlords.

Michelle Lawson, manager astatine Lawson Financial, a Fareham-based broker, said rising mortgage, combined with regulatory changes meant rising rents were "no surprise".

"Landlords cannot sorb these rises immoderate much and they are people having to beryllium passed up the chain," she said.

Other spot brokers said a shortage of disposable properties meant request was outstripping proviso successful the rental market.

Rhys Schofield, managing manager astatine Derbyshire-based owe advisers, Peak Mortgages and Protection said request was up 48% compared to pre-Covid levels portion spot to rent was "like hen's teeth"

"Rents being forced ever upward surely doesn't bash tenants immoderate favours," helium said.

Property values accrued by lone 1.9% successful the twelvemonth to May, the astir caller period statistic are disposable for.

House prices had antecedently been rising overmuch much rapidly than that, with yearly location terms ostentation hitting 14% past year. They peaked successful September 2022.

There was wide saltation successful location terms ostentation astir the UK, however.

In England, the mean location terms grew 1.7% to £304,000 successful the twelvemonth to May.

In Wales it roseate 1.8% to £213,000.

In Scotland, the mean terms was up 3.2% astatine £193,000. And Northern Ireland saw the mean emergence 5% to £172,000.

Within England, the North East recorded the highest percent summation successful location prices portion the East saw nary growth.

Gabriella Dickens, a elder UK economist astatine Pantheon Macroeconomics, said they were inactive forecasting an wide "peak-to-trough" driblet successful location prices of astir 10%.

"Note, though, that adjacent if prices bash autumn that far, they inactive volition beryllium astir 15% supra their pre-Covid level," she added.