Private rents across the UK saw a 9% increase in the year to December, rising by £110 to an average of £1,327 per month, according to data from the Office for National Statistics (ONS).
In England, rents surged by 9.2%, pushing the average monthly cost to £1,369. In Wales, rents increased by 8.5%, bringing the average to £777, while in Scotland, rents rose more modestly by 6.9%, reaching £991. Northern Ireland saw an 8.6% rise in rents over the year to October.
The biggest rent increases in England were felt in London, where rents surged by 11.5%, reaching £2,220 on average. In contrast, the smallest increase was in Yorkshire and the Humber, where rents grew by just 5.4%. The North East was the least expensive region, with average rents of £706.
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At a local level, December data revealed that Kensington and Chelsea in London had the highest average rent in the UK, at £3,588. In stark contrast, Dumfries and Galloway in Scotland recorded the lowest rent at £499, making the average rent in the most expensive local area more than seven times higher than in the least expensive. Excluding London, Elmbridge in the South East saw the highest average rent at £1,867.
Sarah Coles, Yahoo Finance UK personal finance columnist and head of personal finance at Hargreaves Lansdown, said: “The rate of rises has eased very slightly, but that will come as no comfort to anyone facing a 9% overnight hike in the cost of keeping a roof over their head.”
Gareth Atkins, managing director of lettings at Foxtons, said: “Looking at the rental landscape in the year ahead, I expect to see traditional seasonality in the market, similar to 2024.
“Whilst we’re projecting modest rent growth of 3-5%, the real story will lie in the resilience of supply levels.”
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By property type, detached properties saw the highest average rent in Great Britain at £1,523, while flats and maisonettes were the cheapest, with an average of £1,296. Among property sizes, the most expensive rents were for four-bedroom-plus homes, at £2,013, while one-bedroom properties had the lowest average rent of £1,067.
In parallel, UK house prices increased at their fastest annual rate in almost two years, with the annual growth rate ticking up from 3% in October to 3.3%. This brought the average property value to £290,000. In England, average house prices rose to £306,000, marking a 3% annual increase.
Wales saw a 3% increase to £219,000, while Scotland experienced a larger rise of 4.7%, with average prices reaching £195,000. Northern Ireland saw the most significant growth, with house prices rising by 6.2%, bringing the average value to £191,000 in the third quarter of 2024.
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Nathan Emerson, chief executive at property professionals’ body Propertymark, said: “With keenness from many across England and Northern Ireland to complete before stamp duty increases take effect in April, it is imperative there is a strong sense of confidence for people to approach the market.
“Across the last quarter, our members have witnessed a positive uplift in the number of prospective buyers registering.”
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