Rent Increases Hit East Midlands Tenants
Highest rent increases hit East Midlands tenants, with London recording lowest impact
UK private sector rental prices increased by 2.3% in 12 months, the largest annual growth rate since December 2016. The figures in the year to February have been revealed by the Index of Private Housing Rental Prices.
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They showed that the East Midlands saw the highest growth at 3.8%, with London seeing the lowest, at 0.2%.
A fall in demand in the sector caused by remote working has changed housing preferences, according to the Office of National Statistics (ONS) as well as a change in short-term lets to long-term lets.
Changes across the country
Prices increased by 2.1% in England – the highest 12-month growth rate since March 2017.
Excluding London there was a 3.1% growth in private rental prices, up from an increase of 3% in January, indicating the highest 12-month growth rate since the research began in 2006.
Across the UK, there was:
- 1.4% increase in Wales
- 2.6% increase in Scotland
- 6.5% increase in Northern Ireland
Oher stats from the ONS showed that private rental prices paid by tenants in the UK had remained largely flat between November 2019 and the end of 2020. Rental price growth then slowed at the start of 2021, due to the ongoing pandemic. However, there was a surge as people returned to cities, especially London, at the end of 2021 – beginning of 2022 thanks to indications that restrictions were being eased.
The Index of Private Housing Rental Prices said that the recently reported price increases by ARLA and challenges in supply highlighted by the Royal Institution of Chartered Surveyors would ‘take time to feed through’ to the index.
Passing on increases
With so little in the Spring Statement to support some of the poorest households and more than 50% of landlords feeling the need to pass on the cost of eco-improvements, it’s hard to know when these increases might level out.
In order to support your tenant and help prevent them falling into arrears, we highly recommend looking to cut your costs as much as possible (using a platform like Mashroom is great, as we offer so much for free).
It’s also a good idea to look into Rent Guarantee Insurance now, before further cost-of-living increases make it hard for your tenant to meet their monthly rental obligations.
