One of the UK’s largest tenant referencing and lettings specialists
Posted by Ellie Dreisenstock on October 4, 2022
Tough times for tenants and landlords as rent rises compound cost-of-living and pound sterling crises.
For September 2022, the average rental price for a new tenancy in the UK rose by 1.4% since August 2022 to £1,159 per calendar month (PCM).
Every region in the UK has seen annual and monthly growth.
Excluding London, the UK average rental price is now £971 PCM, up 1.0% from last month.
London’s average price for September is £1,945 PCM. This is a 2.5% increase since last month and is 11.0% higher than 12 months ago.
The North-East saw the next largest monthly variance, with rents 2.4% higher than last month, up to £609 PCM
Northern Ireland has seen the highest annual growth (14.6%), with an average rental price for September 2022 of £808 PCM.
Commenting on the latest data, CEO Andy Halstead had the following to say:
Recent weeks have seen the value of pound sterling dropping rapidly and concerns over rising mortgage rates. Combined with high energy prices and rising expenses across the board, it is fair to say that it is a worrying time for the private rental sector and the country as a whole.
“The rising cost of living is likely to see more tenants unable to afford their rent payments, and spiralling mortgage rates are making things harder for landlords. Several factors are combining to result in more and more landlords leaving the market, sadly depleting an already inadequate supply of rental properties to meet tenants’ demand. This will only result in further increases in the average rent price at a time when tenants can ill afford to take on extra expense, and landlords can ill afford to miss out on rent payments.
A high cost of living resulting in tenants struggling to pay their rent does not suit anyone, as neither landlords nor tenants can approach the coming months with certainty about their immediate financial situation. We hope that the outlook improves in the coming weeks and months.