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UK renters face deepening ‘rental hell’ as rents continue to soar

Published 18/09/2024, 15:20
© Reuters UK renters face deepening ‘rental hell’ as rents continue to soar
HRGV
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Proactive Investors - Renters across Great Britain continue to face rising costs, with private rents increasing by 8.4% in the year to August, according to the latest data from the Office for National Statistics (ONS).

The average rent now stands at £1,286 per month.

In England, London saw the steepest rise at 9.6%, while the South West experienced the lowest growth, at 6.4%.

Sarah Coles, head of personal finance at Hargreaves Lansdown (LON:HRGV), called the state of the rental market nothing short of “ensuring rental hell”.

“If renters think there may be light at the end of the tunnel, they’re sorely mistaken. They’re in a deep, dark hole, and that light is coming from somewhere way out of reach. It’s not going to get any closer without significant change to the way the market is operating, and there’s no sign of that any time soon."

Despite government plans to increase housing supply, Coles expressed scepticism that these measures would ease pressures on renters in the near future.

“The government will be hoping that the plan to build more homes will eventually ease the pressure, but this is a long-term ambition, and in the interim, there’s little hope for renters.”

The ONS data also revealed that rental demand remains high, with Zoopla reporting 21 tenants competing for each available property.

The housing market showed a modest uptick, with the average UK house price rising by 2.2% in the year to July, reaching £290,000.

First-time buyers faced an average price of £242,789, while new-build properties saw a significant increase of 23.2%, compared to a 1.3% rise for existing homes.

Read more on Proactive Investors UK

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