Wednesday, November 20, 2024

UK renters ‘stuck in an endless cycle’ as tenancy costs soar even further

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UK renters saw a significant growth in rent prices in October, per the latest data from the Office of National Statistics.

In the 12 months to October, UK private rents increased by 8.7%, with the average monthly rent in Great Britain reaching £1,307.

London led the regional increases with a 10.4% rise, while the lowest growth rate was in Yorkshire and the Humber at 5.9%.

Commenting on the data, Sarah Coles, head of personal finance, Hargreaves Lansdown, said: “Renters are stuck in an endless cycle of rising costs.

“It’s forcing more to consider living somewhere smaller, in a worse area, or further from work, in order to make ends meet.

“Meanwhile others are considering moving back into shared accommodation. The immediate future looks tough enough, as rents continue to spiral, but what’s worse is that there’s no clear signal that this is ever going to end.”

Labour Chancellor Rachel Reeves’ debut Budget made matters even worse for renters, said Coles, “with a higher stamp duty surcharge loaded on top of frozen income tax thresholds, stricter legislation and higher mortgage rates”.

UK house prices, meanwhile, saw an annual increase of 2.9% in the 12 months to September 2024, reaching an average of £292,000.

England recorded a 2.5% rise to £309,000, while Wales saw a smaller increase of 0.4% to £217,000. Scotland experienced a 5.7% increase, pushing prices to £198,000, and Northern Ireland house prices rose by 6.2% to £191,000.

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