Rents are persevering with to rise sooner than the tempo of inflation and are as soon as once more at file highs, official figures present.
Tenants throughout the UK paid 6.2% extra within the 12 months to December than the yr earlier than, in keeping with information from the Office for National Statistics (ONS).
Such a rise surpassed the speed of inflation, which was 3.9% in December, and was the largest annual share change in rental prices – together with November 2023 – for the reason that ONS started collating the figures eight years in the past.
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In many components of the UK, lease rises remained below annual will increase in pay, which grew at 6.6% general.
But how a lot renters are paying depends upon the place they dwell. In some components of the UK, wage rises have not stored up with pay will increase.
Rents rose by the best quantity in Northern Ireland – turning into 9.3% costlier over the yr. But information was solely obtainable as much as October 2023, so to estimate UK figures as much as December 2023, Northern Ireland’s October 2023 index was carried ahead, the ONS mentioned.
In Wales too, rents had been 7.1% extra pricey in December 2023, in comparison with the identical month in 2022.
England recorded the smallest rise – 6.1%, regardless of lease will increase of 6.8% recorded within the capital, the area which noticed the biggest annual improve.
The newest official affordability figures mentioned London was the one area with unaffordable rents – month-to-month prices made up a median of 35% of earnings.
The ONS courses funds of 30% or extra of median earnings as unaffordable.
Within England, rents rose the least within the North East, by 4.6%.
Such rises are in distinction to deal with costs, which have reversed course and fallen after pandemic-era highs.
The information additionally comes amid expectations that London rents will rise at a slower tempo than the speed of inflation this yr.
More folks within the UK are renters than both outright house homeowners or mortgage holders, in keeping with Sky News evaluation.
Source: information.sky.com”