Rent ‘rises at the fastest pace in 13 years’

Rents are rising at the fastest pace since 2008, as strong demand surpasses supply according to an index.

Across the UK, private sector rents in September were 4.6% higher than a year earlier at £ 968 per share. month on average, marking the strongest growth in 13 years, Zoopla found.

Excluding London, rents across the UK rose by 6.0% annually, a figure that Zoopla said was a 14-year high.

Rents in the south-west of England rose by 9.0% annually, making it the region to record the fastest growth in rents in the third quarter of 2021.

And rents in Purbeck in Dorset increased by 16.2% annually, making it the place with the highest rent growth.

Purbeck in Dorset
Hikers in Purbeck, Dorset. Rents in Purbeck have risen by 16.2% annually, according to Zoopla (Andrew Matthews / PA)

Zoopla said demand continues to outpace supply and puts upward pressure on rents.

Rental growth is also due in part to the popularity of properties in higher price ranges, reflecting an ongoing search for space during the coronavirus pandemic.

Rents in London, too, are now starting to rise as people return to offices, with annual price growth of 1.6% in the latest report, compared with declines of almost 10% at the beginning of the year.

Annual rental rates were 2.7% in Scotland (average £ 627 per month), 5.8% in Northern Ireland (typically £ 633 per month) and 7.7% in Wales (£ 660 per month). .

Grainne Gilmore, head of research at Zoopla, said: “The decline in demand for city centers, including London, has supported a further increase in rents in the third quarter, especially as the supply of rental properties remains tight.”

She added: “Meanwhile, just like in the sales market, there is still a cohort of tenants looking for properties that offer more space or a more rural or coastal location.”

Leave a Comment