Average private rents in the UK rose by 8.6% in the twelve months to July 2024.
This is according to the latest Private Rent Price Index (PIPR) from the Office of National Statistics (ONS), which shows that average rents in the year to July 2024 rose to £1,319 (8.6%) in England, £748 (7.9%) in Wales and £965 (8.2%) in Scotland.
In Northern Ireland, average rents rose by 10% in the year to May 2024.
In England, rental inflation in the 12 months to July was highest in London (9.7%) and lowest in the North East (6.1%).
Nathan Emerson, CEO of Propertymark, said the rental market continues to face the harsh reality of ongoing pressure on housing demand exceeding current supply.
“This has a real impact on rental prices for consumers and the result is that prices tend to be pushed further upwards. It is vital that the imbalance between supply and demand is addressed as a priority to mitigate the current trend of ‘nine applications per available property’ that we are seeing.”
He added: “The situation is unhealthy and can only be resolved by investing in a diverse mix of sustainable housing over the long term to keep pace with increasing demand.”
Brian Byrnes, head of personal finance at Moneybox, said: “For a nation of would-be homeowners, the news that rental costs continue to rise is worrying. But with a new government committed to supporting wealth building across the country, there may be a glimmer of hope for would-be UK homeowners.”
He concluded: “Our industry must start to seriously consider the long-term impact of ever-increasing rental costs. We know how these continue to weigh on renters’ disposable income and impact their ability to make a down payment on a future home.”
