Rent rises lag far behind inflation

Rents have increased by 3.4 per cent across the UK on average over the past year - rather less than the various measures of general inflation.

Data from the Office for National Statistics break the UK down into the component nations.

So rents in England grew by 3.4 per cent in the same period - the same figure as for the whole UK - while Scotland’s annual rental growth is 3.6 per cent.

Rent in Wales grew by 2.5 per cent while the annual growth rate for Northern Ireland was a strident 8.4 per cent.

Within England the East Midlands recorded the largest annual rent increase of 4.5 per cent with London the lowest on 2.5 per cent.

In a comment on the data, London lettings giant Foxtons says August saw the highest level of tenant demand it had ever recorded.

Lettings director Gareth Atkins says: “There are 43 per cent fewer properties available to rent in the London market. This huge imbalance between supply and demand may cause an unseasonably busy Q4 to come.”

And PropTech firm Flatfair says with renters are “stuck between a rock and a hard place – unable to afford a house but barely able to afford rent” and it wants policymakers “to be directing their attention toward Generation Rent.”

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