Private rents increase at the fastest rate since records began

‘It is a damning indictment of tax decisions which serve to increase rents and make ownership more difficult’

RENTAL prices have increased at the fastest rate since records began, adding to the cost of living squeeze for tenants.

Private rental prices increased by 3.8pc in the 12 months to October 2022, representing the largest annual percentage change since records began in January 2016, according to the Office for National Statistics [ONS] rent inflation index. Rents jumped across the country, with the biggest annual percentage increase recorded in the East Midlands, where prices were up 4.8pc.

London experienced the lowest percentage rise at 3pc. However, this was still the biggest increase in rents in the capital since July 2016. The ONS previously said the median monthly rent was £795 for England.

Rents have been climbing throughout the year after a lull in 2021, which the ONS attributed to lower demand for rental properties as a wave of employees abandoned cities to work from home.

Soaring rental prices have been fuelled by a chronic shortage in available properties. Tenant demand has shot up 20pc year-on-year, according to property website Rightmove yet the number of available properties is down 9pc.

The National Residential Landlords Association, which represents property investors, said tenant demand was likely to grow further as mortgages became more expensive, meaning more pain for renters who are already struggling with higher bills.

Ben Beadle of the NRLA said: “The Government’s strategy for the private rented sector lies in tatters.

“The fact that the supply of homes to rent is falling despite an increase in demand is a damning indictment of tax decisions which serve only to increase rents and make home ownership more difficult to achieve.”