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Half of private tenants in England saw rents rise by just under 10% in the year to February, according to the Office for National Statistics.
Official data watcher reports that 50.6% of renters increased their housing costs compared to 36% a year ago, with an average increase of 9.7% compared to 7% in the previous 12 months.
He adds that in London, 66.8% of private tenants experienced rent growth, the highest of any region in England, while 27.9% of renters in the North West experienced the lowest rent growth.
This indicates that the proportion of privately owned rental apartments that saw prices rise by 10% or more was 33.3% in London compared to 18.2% in the rest of England.
Rents in the capital also rose by an average of 12%, higher than the average for England.
Since the start of last year, flats and maisonettes have “consistently shown the highest average percentage change in rent of any type of property in London,” the body adds.
The median rent in the UK is £1,013, according to Halifax data released earlier this month.
Sarah Coles, head of personal finance at Hargreaves Lansdown, says: “Rush rent payments are ruining the finances of those trapped in increasingly expensive homes.
“The figures in London are particularly dismal, with more than two-thirds of rents up 12% on average. Given that private rentals are much more common in London – 29% compared to an average of 19% – the impact is felt even wider.
“The rent surge has been hit hard because while yesterday’s Household Resources Survey found that the average rent is the same as the average mortgage – £150 a week – it represents a much higher share of renters’ income because they usually receive lower wages.
“When you add to that the many price hikes being charged to tenants – from energy to food to even taxes – it’s easy to see why the Hargreaves Lansdown Savings and Sustainability Barometer shows that tenants are worse off than their landlords in every way. analogues. About 58% have poor or very poor financial soundness – compared to 18% of those with mortgages and 11% of those who fully own real estate.
“And it’s not just about your day-to-day finances, because tenants spend so much money to keep the wolf out the door that they struggle to save anything to help them climb the corporate ladder.
“That’s why the Family Resources Study found that people are renting for longer periods. Within each age group, the share of the private rental sector has increased over the decade – the share of people aged 35-44 who rent has increased from 19% to 26%.
However, Private Finance CTO Chris Sykes notes that there have been recent signs that landlords’ financial costs are starting to come down, which could lead to lower rents over time.
Sykes says: “We have seen improvements in some mortgage products amid falling swap rates last week, a few examples include specialist lenders Paragon and Fleet mortgages, and Virgin Money.
“Often, from specialized lenders who buy to rent, lower mortgage rates mean less stress, so landlords can get higher loan amounts, providing more lending opportunities and better access to other mortgage products.
“The inability of landlords to reach the required level of borrowing to refinance their current level of debt has been an ongoing problem in the recent lending environment.
He adds: “Hopefully these changes are a sign of what’s to come and can provide landlords with more solutions to either their existing property or raise funds to improve their energy efficiency in light of the new energy efficiency certification rules.”
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