Residential Letting - rent rises outstrip inflation in past year

Latest data from The Deposit Protection Service shows that average UK monthly rents for Q3 2023 were £1,121.46: a rise of 9.13 per cent or £93.79 since Q3 2022.

Inflation increased by 6.7 per cent during the same period, meaning that rents outstripped inflation by more than a third.

A separate survey from The DPS of more than 2,500 tenants during Q3 2023 confirmed that 7.0 per cent more respondents said their rent had increased during the past six months - that’s 43 per cent in September 2023 compared with 36 per cent in March.

The same survey also showed that the proportion of tenants worried they might struggle to pay their rent in the future rose three per cent over the same period (51 per cent in March 2023 compared with 54 per centy in September 2023).

Matt Trevett, managing director at The DPS, says: “Every region across the UK has witnessed inflation-beating rent increases during the past 12 months. The combination of increasing demand for rental property and cost-of-living pressures seems to be fuelling sustained rent rises.

“Rent increases are also affecting every type of property, whether flats, terraced, semi-detached or detached, which may also reflect demand for rental property outstripping supply in many parts of the UK.”

Scotland saw the largest annual rent increase at 13.56 per cent (£123.45), with average rents reaching £1,033.80 by the end of Q3 2023.

The second highest annual rent increases took place in the east of England, where rents rose 11.32 per cent (£113.55) to £1,116.87 per month.

London saw the largest value increase, with average monthly rents rising 13.31 per cent (£173.13) during the past 12 months to £1,922.37.

Yorkshire rents rose 6.73 per cent, increasing £48.18 to £764.24.

Flats in the east experienced the highest annual percentage increase of any property type, rising 16.88 per cent (£149.36) to £1,034.41.  

Detached properties in the south east experienced the highest value rent rise, increasing by 12.66 per cent (£208.84) to £1,857.81 per month.