Rent rises by 2.3% according to Office for National Statistics

Recent figures from Office for National Statistics show cost of renting home in Britain rise.

The cost of renting a home in Britain rose faster than the overall cost of living in the past year, official figures indicate.

According to the Office for National Statistics, private rental prices increased by 2.3% in the year to September – a faster rate than the change in the cost of living as recorded by inflation – which was 1% over the same period.

The ONS said: “Residential house price growth in Britain has typically been stronger than rental price growth, with an average 12-month rate of house price inflation between January 2014 and August 2016 of 7.3%, compared with 2.1% for rental prices.”

A report commissioned by Cornwall Council has indicated that rents will continue to rise over the next four years but far higher than incomes are expected to increase.

Savills wrote the report which is forecasting steady rent increase of 3% to 3.5% a year up to 2020 resulting in a cumulative rise of 16.5%.

According to recent research from Countrywide, the UK’s largest estate agency chain, the property rental market is taking off, leaving the sales marking slumping due to low supply and rising house prices for first-time buyers.

The research suggested that house-buying will be outstripped for the first time in eight decades next year, as house prices rise and the struggle continues for house-buyers to find a property they can afford.

At the start of March, there was a surge in landlords buying property before a change is stamp duty rates. This has since led to an increase in the number of rental properties advertised.

Johnny Morris said that when informally advertised lets were taken into account, the rental market may have already outgrown the sales market.

 

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