UK Rental Market Sees Significant Growth in June

Average private rents in the UK have increased by 8.6% in the 12 months to June 2024, according to the latest data from the Office for National Statistics (ONS). This marks a slight decrease from the 8.7% rise seen in the 12 months to May 2024, but still represents a significant growth in the rental market.

Average rents across the UK

Breakdown by region shows that average rents have increased by 8.6% in England, 8.2% in Wales, and 8.4% in Scotland. In Northern Ireland, average rents have seen a 10.3% increase.

London has seen the highest rental increase in England, with a 9.7% rise, while the North East has seen the lowest, with a 5.9% increase.

The data also reveals that average house prices have increased by 2.2% to £285,000 in the 12 months to May 2024. This marks a significant increase from the 1.3% rise seen in the 12 months to April 2024.

“The uptick in house prices speaks to a market that is gaining momentum and poised to grow even stronger as we progress through the second half of the year.” - Ben Waugh, managing director at more2life

The latest figures have sparked concern among experts, with many calling for the new government to prioritize the current rental crisis. Sam Reynolds, CEO of Zero Deposit, has stated that the government needs to focus on increasing the supply of rental homes to control spiralling costs.

Rental properties in high demand

The demand for housing and overall market confidence is expected to drive growth in the second half of the year, with many homeowners looking to put their houses on the market. Advisors are expected to play a crucial role in providing expert guidance to homeowners during this time.

As the Bank of England prepares to make its decision on interest rates in early August, the housing market is expected to remain a key area of focus for the government and industry experts alike.