Rental costs in the PRS up 2.3% year-on-year in UK

Rental costs in the PRS up 2.3% year-on-year in UK

As renting has become a lifestyle choice for millions, demand for high-quality properties in the private rented sector has seen upward pressure on rental costs.

Summary:

  • Demand for appropriate rental accommodation continues to grow across the UK, pushing rental costs up by 2.3% year-on-year
  • Supply continues to fall far short of demand, with PwC estimating that by 2025 there will be 1.8 million additional households looking for rental accommodation
  • The PRS has grown in popularity across all demographics, with the number of families living in rented accommodation increasing by 50% in the last five years to 1.6 million households

Rental costs in the private rented sector paid by tenants in Britain increased by 2.3% in the 12 months to September 2016, the latest official data shows.

There is some regional variation with the data from the Office of National Statistics (ONS) showing rents up by 2.5% in England and 0.1% in Wales, but down by 0.1% in Scotland.

Rental prices increased in all the English regions over the year to September 2016, with rental prices increasing across the country, excluding London, increased by 2.1%.

All areas have seen rises in their private rental prices since 2011 with those in England up more than those of Wales and Scotland.

The latest data suggests that the UK’s housing shortage continues to drive up demand from tenants and push up rental prices, according to Shane Ballard, letting director at Greene & Co.

“Today’s data shows that the UK private housing rental market continues to remain strong, as prices rose by 2.3% annually, and remain unchanged on the month, as the UK’s housing shortage continues to push up demand and bolster prices,” he stated.

This demand for purpose-built and appropriate rental accommodation is not expected to slow in the future. By 2025, according to research by PwC, there will be 1.8 million more households looking for rental accommodation.

Demographics of those living within rented accommodation are also expanding and changing, as the number of families living in rented accommodation has increased by 50% in the last five years to 1.6 million households, according to the Government’s English Housing Survey.

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