Rent prices hit record high in England | Money News Aitrend

English rent prices have hit a new record, rising by almost 10% last year, according to official figures.

The typical private rental price in England increased by 9.3% in the year to November, costing £116 more than 12 months earlier, according to the Office for National Statistics (ONS).

English renters paid an average of £1,362 last month, a big increase from the 8.8% rise seen a month earlier.

Rent rises in the UK were not far behind, with growth of 9.1% for the whole year, just below the record annual rise of 9.2% recorded in March.

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Londoners have seen the biggest rent increases. In the capital, the rent bill increased by 11.6%, surpassing the previous record.

Cheaper accommodation could be found in Scotland and Wales during this period. Their average monthly rents were £980, up 6.5%, and £772, up 8.0%, respectively.

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Data for Northern Ireland is only available up to September, during which time rents increased by 9%.

Analysis by Sky News found that most people in the UK were renters and mortgage holders were in the minority.

Rents are rising disproportionately

Rent increases far exceed the price of real estate increases, mortgage prices and overall inflation rate.

Those remortgaging at the end of November could get a typical five-year fixed deal at 5.28% or a two-year fixed deal at 5.52%.

Meanwhile, the Consumer Price Index measures inflation stood at 2.6%.

Average results were also released on Wednesday. real estate priceswhich were much lower than the rent increases.

Average house prices in the UK increased by 3.4% in the year to October 2024. In England, house prices increased by 3%, in Wales by 4% and in Scotland 5.5%, the ONS said.

Why are prices increasing?

The increase is because there are more renters than available rental properties, the National Residential Landlords Association (NRLA) said.

“The biggest pressure on rents remains a chronic shortage of housing to meet demand,” said Chris Norris, NLRA policy director.

“According to Savills, up to one million new rental homes will be needed by 2031 to meet growing demand. Despite this, government data shows that one in three landlords are now planning to sell the properties they rent within the next two years.”

The London Renters Union has been contacted for comment.

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