Rents grew in all UK countries over the year
Private rental prices paid by tenants in the UK rose by 3.4% in the 12 months to August 2022, up from the 3.3% annual rent price growth in July, according to the Office for National Statistics (ONS).
This latest increase in private rents represents the largest annual growth rate recorded since the ONS Index of Private Housing Rental Prices (IPHRP) series began in January 2016. The index tracks the prices paid for renting property from private landlords in the UK.
In England, private rental prices grew by 3.4% year-on-year, representing the highest annual growth rate since November 2008. When London is excluded from England, private rental prices increased by 3.9% over the same period.
Private rents also went up in Wales, with annual growth of 2.5% in August. In Scotland, private rental prices grew by 3.6% year-on-year. The annual growth rate of 8.4% in Northern Ireland was higher than the other countries of the UK.
Focusing on the English regions, the largest annual rental price increase was in the East Midlands at 4.5%, while the lowest annual rental price growth was in London, where rents increased by 2.5%.
The Association of Residential Letting Agents (ARLA) reported in its private rented sector report for July 2022 that demand for properties continues to increase, as does the rent. The report also revealed an increase in the number of tenants renewing their tenancies, as many prefer to stay put rather than move. The Royal Institution of Chartered Surveyors’ July UK Residential Market Survey also showed an increase in tenant demand over the month.
ONS pointed out that these supply and demand pressures can take time to feed through to the IPHRP, which reflects price changes for all private rental properties rather than only newly advertised rental properties.