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UK rents rise at fastest pace since 2007

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Average UK rents increased by 2.47%, from £849 to £870, during the second quarter of this year, the largest quarterly rise recorded by The Deposit Protection Service (The DPS) since 2007.

Additionally, the largest increases in rent since the firm’s records began were all noted during the same period. This was marked by a 1.74% rise seen in Q2 2021, followed by a 1.96% jump in Q4, then a 1.8% uptick in Q1 of this year. The DPS said this was “significantly contributing” to the rate of rent inflation. 

On an annual basis, the average rent in Q2 was a £66 jump or 8.21% higher when compared to the same period last year. 

The North East recorded the largest annual rise in average rents, with a 10.75% or £57 hike to £710. This was followed by the West Midlands, which saw a 10.7% or £69 jump to £714. 

Some eight of the 12 regions recorded by The DPS saw rents go up by at least 7%.  

The smallest rise was recorded in Northern Ireland, where rents rose by 3.58% annually to £578. It was also the only region to report a quarterly fall in rental costs, with a £3 drop on Q1. 

London saw the biggest yearly increase in rental costs by value, with a £124 or 9.44% rise to £1,438. 

Based on property type, the average rent for a flat saw the largest rise at 2.55% annually to £885. This was followed by semi-detached houses, which recorded a 2.5% increase to £943, then detached houses which rose 2.25% to £1,184. Terraced houses recorded the lowest growth at 2.19% to £839.

Matt Trevett, managing director at The DPS, said: “The last 12 months of rent increases, including a significant acceleration during the last quarter, shows that the price of renting forms a substantial part in rising living costs across the country. 

“A mixture of tenants moving back into cities, continued desire for larger rental properties with more space and a current shortage of properties of all types is causing rent prices to rise. 

“Despite the current economic environment, many tenants still seem prepared to pay in order to secure a rental property.” 

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