Average UK private rents have increased by 8.9% in the 12 months to April 2024, down from 9.2% in March, revealed the latest ONS price index of private rents.
According to ONS, this is the first slowing of the annual rental inflation rate since December 2023.
Regionally, average rents have increased to £1,293 (8.9%) in England, £730 (8.2%) in Wales and £952 (10.0%) in Scotland.
In Northern Ireland, average rents have risen by 10.4% in the 12 months to February 2024.
In England, the highest rent inflation was reported in London (10.8%), with Kensington and Chelsea having the highest rent of £3,356.
Meanwhile, the lowest rent inflation figure was recorded in the North East (5.8%).
The ONS data also revealed an 1.8% increase in average UK house prices in the 12 months to March 2024, up from a 0.2% decrease the previous month.
Giles Mackay, founder at property data firm Outra:
“With rental costs increasing over the last decade, the pressure is mounting for policymakers and the private sector; they must work together not only to deliver more units, but deliver them in the areas where need is greatest if they want to help solve the affordability crisis.”
Michelle Lawson, director at Lawson Financial:
“Landlords, pressured with taxation, regulation and higher interest rates, are leaving the sector in their droves, which is reducing the available stock for tenants and driving up rents — as a result, I'm slightly surprised by this data.
“On the sales front, there is definitely more activity and things are starting to pick up but we need that first base rate cut from Threadneedle Street to really get things going. Sadly we may have to wait a little longer after this morning's inflation data.”
Harps Garcha, director at Brooklyns Financial:
“Though rents have come down slightly according to this data, they're still painfully high for many tenants.
“Landlords are finding it difficult to achieve profitability and the reduction in rental properties is tightening the rental market, increasing competition and making conditions extremely challenging for tenants.
“Both the sales and lettings market will remain under pressure until mortgage rates start to come down.”
Simon Bridgland, director at Release Freedom:
“I'm surprised that rents have come down; the estate agents I speak to are all seeing an increase in available property, largely due to landlords calling time on their property portfolios.
“This reduction in rental stock is piling further pressure on tenants and sending rents spiralling upwards. Not knowing how long you stand to remain in your home really is also an awful stress on families beholden to the motives of private landlords, who themselves are feeling pain.
“It’s in this situation that the private landlord gets to understand the risk of investing directly in bricks and mortar — many now realise it isn’t perhaps the golden goose they thought it was.”
