The UK’s rental market is experiencing a significant surge, with private rental prices skyrocketing across the nation, according to the latest data released by the Office for National Statistics (ONS).

Rental Prices on the Rise

Private rental prices paid by tenants in the UK have seen a substantial increase of 6.2% in the 12 months leading up to November 2023. This growth is a slight uptick from the 6.1% increase observed in the year leading to October 2023. This marks the largest annual percentage change since January 2016, when this data series first began.

London Leads, North East Lags

Within England, London stands out with the highest annual increase in private rental prices at 6.9%, the highest since January 2006 when records for London began. Contrarily, the North East experienced the lowest growth at 4.7%.

UK Excluding London

For the UK excluding London, rental prices saw a 5.9% rise over the same period, a record high since January 2016. London’s significant contribution to the UK’s rental market is evident, accounting for nearly a third of the UK’s rental expenditure.

England’s Steady Climb

England witnessed a 6.1% increase in private rental prices, slightly higher than the previous month. Excluding London, the increase was 5.7%, the highest since data collection started in January 2006.

Wales Leading the Surge

Wales recorded the highest increase among all Great Britain countries at 7.3%, up from 6.9% in October 2023. Notably, HomeLet’s data showed an even higher inflation rate for new tenancies at one point, but this has since slowed down.

Scotland’s Steady Pace

Scotland maintained a consistent increase of 6.2% in private rental prices, matching the growth seen in October 2023. This rate is the joint highest since January 2012. The introduction of the Cost of Living (Tenant Protection) Scotland Act, which caps rental increases, is a significant factor in this stability.

Northern Ireland’s High Rates

Northern Ireland experienced a 9.1% rise in private rental prices as of September 2023, though this rate has slightly declined from its peak in March 2023.

London at the Top

In a detailed regional breakdown within England, London’s 6.9% increase in rental prices leads all regions, highlighting the capital’s significant influence on the national rental market.

Conclusion

The UK’s rental market presents an increasingly challenging prospect for tenants, with prices rising significantly across the board. London remains a hotspot for rental inflation, but the trends are not uniform across the UK, with each region showing distinct patterns.