The Office for National Statistics (ONS) has released its latest data on private rent prices across the UK for April 2024, providing a comprehensive overview of the current rental market. Here’s a breakdown of the key points from the report, helping renters and investors understand the trends and what they might mean for the future.

Rising Rent Prices – National Overview

In the 12 months leading up to March 2024, the average private rent across the UK saw a significant increase of 9.2%, slightly up from the 9.0% increase reported in February 2024. This is the highest annual percentage change recorded since the inception of this data series in January 2015.

• England experienced a 9.1% rise, pushing the average rent to £1,285 per month.
• Wales also saw rents increase by 9.0%, reaching an average of £727 per month.
• Scotland reported a higher rise of 10.5%, with average rents at £947 per month.
• Northern Ireland, with data available up to January 2024, observed a 10.1% increase in rents.

London remains the hotspot for the highest rent inflation, particularly striking at 11.2% in the year to March 2024. Conversely, the North East experienced the lowest rate of rent inflation in England at 6.1%.

Record-High Rents – Spotlight on Hotspots

Kensington and Chelsea in London reported the highest average private rent at £3,305, whereas Dumfries and Galloway in Scotland had the lowest at just £475. This stark contrast highlights the vast disparities in rental costs across the UK.

Drivers Behind the Rent Increases

According to the Royal Institution of Chartered Surveyors (RICS), this surge in rent prices is primarily due to rising tenant demand coupled with a continued decrease in new landlord instructions. This imbalance has persisted for 20 consecutive months, leading experts to predict further rent increases in the near future.

Analysis by Country

England

The rise in England’s average rent is the most significant since this series began in 2006, marking a notable escalation from February’s 8.8% increase.

Wales

Although the rise in Wales remains consistent with previous months, it’s still below the record-high increase of 9.8% observed in November 2023.

Scotland

Scotland’s rental market has experienced a slight easing after peaking in August 2023 with an 11.8% increase. However, it’s important to note that the data primarily represents new lets, which are not subject to Scotland’s rent cap on in-tenancy price increases.

Northern Ireland

The latest figures for Northern Ireland show the highest annual rise since data collection began in 2016, highlighting a significant uptick in rental costs.

Regional Rent Inflation in England

In March 2024, London not only had the highest rents but also the fastest-growing rates, particularly driven by high growth in areas like Brent. The North East, while having the lowest rent inflation, still matched its highest annual rate since 2006.

Varied Rent Distribution Across Local Areas

From Kensington and Chelsea to Dumfries and Galloway, the disparity in rental prices across local areas is vast. Excluding London, the City of Bristol boasted the highest rents at £1,748 per month.

Property Size and Rent Costs

In terms of property types, detached properties commanded the highest rents at £1,446 on average, while flats and maisonettes were the least expensive at £1,211. Properties with four or more bedrooms saw the highest rents, averaging £1,912, compared to £995 for single-bedroom properties.

This report underscores the increasing challenge many face in finding affordable rental accommodation across the UK. With rent prices continuing to rise, driven by a complex interplay of demand and supply, the outlook suggests that renters may need to brace for further increases in the months ahead.