UK rents rose by 9 percent in Feb, highest rate since 2015

The United Kingdom has witnessed a staggering surge in rental costs, reaching the highest rate of increase since records began in 2015.

The housing market, grappling with constricted supply and higher interest rates, continues to exert immense pressure on tenants across the country.

According to data released by the Office for National Statistics (ONS), the average UK rent surged by 9% in the 12 months leading up to February.

This sharp uptick from the 8.5% recorded in January underscores the unprecedented pace of rental inflation, highlighting the acute affordability challenges faced by renters nationwide.

Rents rise most in London

Private rent inflation was most pronounced in London, where costs soared by 10.6%, while the North East experienced the lowest increase at 5.7%.

The average monthly rent in the UK now stands at £1,238, marking a significant £102 increase compared to the same period last year.

Despite the surge in rental costs, average house prices experienced a contrasting trend, decreasing by 0.6% in the 12 months leading to January 2024.

In England, house prices dipped by 1.5%, mirroring a similar decrease of 0.8% in Wales.

However, Scotland witnessed a notable increase of 4.8% in house prices during the same period.

Increase in rate beats inflation rate

The substantial rent increase of 9% far surpasses the inflation rate of 3.4%, underscoring the immense burden faced by tenants grappling with exorbitant cost escalations.

With approximately 5 million households privately renting in England and Wales, as per the latest census data, the rental affordability crisis remains a pressing concern for a significant portion of the population.

As housing costs continue to outpace income growth, policymakers face mounting pressure to implement measures aimed at addressing the widening gap between rental affordability and household incomes.

Failure to tackle these challenges could exacerbate the housing divide, leaving millions of households vulnerable to financial strain and housing insecurity.

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