Common non-public rents rose at their quickest annual tempo final month since comparable data started in 2015, based on official UK figures.
The info from the Workplace for Nationwide Statistics (ONS) confirmed no let up within the surging prices confronted by renters since 2022.
It reported a leap of 9% over the 12 months to February in a provisional estimate, up from the 8.5% annual fee seen in January.
The ONS stated common UK home costs decreased 0.6% within the 12 months to January, to £282,000, noting an easing within the tempo of decline.
Cash newest: Response as UK inflation eases by greater than anticipated
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Housing market revival is patchy
More moderen trade information has urged a return to cost progress as mortgage charges have come down in anticipation of Financial institution of England rate of interest cuts.
The upwards strain on rents has come from demand vastly outstripping provide and landlords passing on to tenants the upper rates of interest they’re dealing with.
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The city that ran out of houses
ONS deputy director for costs, Matt Corder, stated: “Brent noticed the best annual rental progress of all native areas and Melton noticed the bottom, whereas rental costs have been highest in Kensington & Chelsea and lowest in Dumfries & Galloway.
“Common UK home costs continued to fall, albeit at a slower annual fee than seen lately.
“Certainly, Scotland’s common home costs rose at their quickest annual fee for greater than a yr.”
At a fee of 9%, the tempo of lease will increase is vastly outstripping inflation.
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Separate ONS information on Wednesday confirmed a slowing within the annual headline measure from 4% in January to three.4% final month.
Nonetheless, the prospects for Financial institution of England rate of interest cuts nonetheless appear to be months away, because the figures is not going to have erased considerations amongst rate-setters about inflationary pressures forward.
Hannah Bashford, director of mannequin monetary options, stated of the ONS figures: “As surprising as this information is, it is not a shock as we now have seen many landlords having to lift their rents to cowl the elevated curiosity prices and fulfill lenders’ affordability standards.
“The rental market is damaged and those who do not need mortgages are reaping the advantages of those hikes, whereas others are nearly clinging onto their investments.
“These rents make it nearly unattainable to avoid wasting for a deposit and so the circle continues.”
