The latest increase marks the largest annual rent price growth recorded by ONS
Private rental prices paid by tenants in the UK increased by 3.2% in the 12 months to July 2022, up from annual rent price growth of 3% in June, the Office for National Statistics (ONS) reported.
This latest increase in private rental prices represents the largest annual growth rate recorded since the ONS Index of Private Housing Rental Prices (IPHRP) series began in January 2016. The index tracks the prices paid for renting property from private landlords in the UK.
Private rental prices grew by 3.2% in England, 2.1% in Wales, and 3.7% in Scotland in the 12 months to July 2022. Rental prices for the UK, excluding London, also increased by 3.7%, slightly up from an increase of 3.6% in June.
London private rental prices increased annually by 2.1%, up from an increase of 1.7% in June 2022. ONS said that while this is the strongest annual growth in London since January 2017, this price growth remains the lowest of any of the English regions.
Among the English regions, the East Midlands saw the highest annual growth in private rental prices at 4.3%.
The Association of Residential Letting Agents (ARLA) reported in its June 2022 private rented sector report that the number of properties available for rent is gradually increasing, but rent prices also continue to increase. The Royal Institution of Chartered Surveyors’ July 2022 Residential Market Survey, meanwhile, reported an increase in tenant demand over the month.
However, ONS pointed out that these supply and demand pressures can take time to feed through to the IPHRP, which reflects price changes for all private rental properties rather than only newly advertised rental properties.
ONS said growth in private rental prices remained broadly flat between November 2019 and the end of 2020. The beginning of 2021 saw a slowdown in rental price growth, which was driven by prices in London. This could be a reflection of a decrease in demand because of the COVID-19 pandemic, the ONS noted.
Private rental price growth in the UK then increased during the latter part of 2021, with widespread annual growth
