The tempo of personal rental payments hit a brand new report excessive final month, in keeping with official figures charting the affect of rising rates of interest on the housing market.
The Office for National Statistics (ONS) measured UK rental costs, in a provisional estimate, rising at a fee of 6.1% within the 12 months to October.
That was up from the 5.7% reported within the yr to September and the best fee since information started in 2016.
In a regional breakdown, Wales noticed the strongest leap over the annual interval – working at 6.9%.
That was adopted by London at 6.8% with Scotland’s fee working at 6.2%.
Average costs paid by tenants stood at 6% in England, the ONS stated, with North East England seeing the weakest decline among the many areas of 4.7%.
Wider home value knowledge, which lags the rental figures, confirmed a decline in costs of 0.1% over the 12 months to September.
It marked, the ONS stated, the primary annual decline in costs since 2012 – a statistic that mirrored findings by mortgage lenders on the state of the market on the time.
The rental and housing market value exercise displays the affect of rate of interest rises, imposed by the Bank of England since December 2021, to tame inflation.
Raised borrowing prices have filtered by means of to landlords and new mortgage clients alike.
But more moderen knowledge has instructed that the Bank’s determination to pause its rate of interest cycle in September is beginning to have an effect.
Fixed mortgage prices are slowly retreating from ranges approach above 6%, serving to exercise and costs to return to month-on-month progress in keeping with the latest studies from Nationwide and the Halifax.
70 British native authorities the place home costs have risen, bucking total pattern
The image for rents is much less clear however rising expectations that Bank fee won’t be raised once more, because of continued progress within the battle towards inflation, imply that there’s hope rental value progress could also be nearing its peak.
A giant stumbling block, nevertheless, continues to be an absence of provide with brokers reporting fierce competitors for rental properties changing into obtainable.
Charities warn that regardless of the easing of inflation, households will proceed to face an evolving value of dwelling disaster this winter as payments for power, meals and housing stay effectively above pre-COVID ranges.