Rental Rates to Rise by Around £800 Per Annum Causing Financial Difficulty for Many Tenants
Experts from rental platform Ocasa, are warning that in as little as a years’ time, rental rates could rise by as much as a whopping £800 per year for most tenants.
Even though the rental market in the UK is somewhat back on track following the covid pandemic and the inevitable lockdowns, the report by Ocasa revealed that the average cost of a rental property is now £12,936 per year for tenants across the UK.
The yearly cost of renting a property has already increased by £1,032 in the last twelve months and the report expects this figure to rise even more in the coming year. It is predicted that increases of around £803 in the next year will be a reality, making it even more difficult for tenants to meet their monthly rental obligations and making it even more challenging to save a deposit in order to get onto the property ladder. So looking forward to this time next year, tenants will be paying on average £13,739 for their annual rent.
Where are the biggest Increases?
It’s no surprise that London has the country’s highest rental rates and therefore the area that is least affordable to most tenants. The average rent in the capital is currently £21,140 per year, a figure significantly higher than the rest of the UK. Ocasa’s report shows that Londoners can expect to see a hike in rental charges of £1,140 per annum in the next 12 months.
Despite London being the most expensive place to rent, when looking at percentages, the North West is predicted to see the sharpest increase in rental rates in the next twelve months. The average price for rental property is currently £10,452, however Ocasa has forecast a significant rise of £1,504 by this time next year.
The third largest increase can be seen in the East of England, where tenants are now paying on average £12,528 but are expected to be paying £13,426 in the next twelve months, equating to an increase of £898.
The South West will see a rental hike of around £790 in the same time period, whilst the South East will see rises of £750 and the East Midlands are predicted a £717 rise in rent per year.
The lowest figures in the report relate to the North East where increases will, on average, equate to a £617 over the next twelve months.
A spokesperson of Ocasa comments: “Despite a rather unsettled rental market landscape as a result of the pandemic, the average UK tenant is still paying over a thousand pounds more a year versus just 12 months ago.”
“This cost is set to climb even further over the next 12 months, and this will be particularly concerning for those residing within the sector.”
They add: “Renting is already the most substantial outgoing they face but in recent weeks, many will have also seen their finances squeezed by the increasing cost of living.”
“When you add an increase in rental costs to this mix, it paints a very bleak picture for the year ahead.”