Rental growth up to 3.0%

UK rental growth rose to 3.0% in June, accelerating from 2.8% in May, the UK’s Index of Private Housing Rental Prices has found.

Private rental prices grew by 2.9% in England, 1.9% in Wales and 3.5% in Scotland in the 12 months to June 2022.

The East Midlands has seen the highest annual growth in private rental prices (4.3%), followed by the South West (4.1%) and East of England (4.0%).

London has the lowest rental growth of 1.7%, though the market has recovered from negative growth as recently as December 2011 (-0.1%)

Paul Brett, managing director, intermediaries at Landbay, said: “Rents have been steadily rising over the past year and have hit a record growth rate of 3%. This reflects tenant demand which remains high while supply in some parts of the country is particularly low.

“The private rented sector is an essential part of the housing mix and we need more rental properties to be available. Despite reports of landlords selling up, many are expanding their portfolios and new, especially younger investors, are coming into the market.”

Nathan Emerson, chief of Propertymark. said: “This continued upward trajectory of rents is not a surprise considering current demand and the wider economic climate.

“The number of new prospective tenants registering with our member agents has stayed at a steady level in June at 93, but an average of new properties coming to the market remains low at just 4 per branch.

“Propertymark is working with all four UK governments to ensure reforms of their private rented markets incentivise new investment from property owners that these figures show is desperately needed.”

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