The latest release of the Index of Private Housing Rental Prices (IPHRP) reveals that private rental prices in the UK continued to rise, with notable variations across regions and countries.
Key Highlights:
- Private rental prices paid by tenants in the UK increased by 5.3% in the 12 months leading up to July 2023. This marks a slight uptick from the 5.2% increase reported in the 12 months leading to June 2023.
- Annual private rental prices experienced growth across the countries of the UK, with rates of 5.2% in England, 6.5% in Wales, and 5.7% in Scotland in the 12 months leading to July 2023.
- Among the English regions, the West Midlands, Yorkshire and the Humber, and London witnessed the highest annual percentage change in private rental prices, all at 5.5%. Meanwhile, the North East reported the lowest annual growth at 4.6%.
- London’s private rental prices displayed an annual percentage change of 5.5% in the 12 months leading to July 2023. This represents an increase above the England average and marks the highest annual rate since the data series for London began in January 2006.
The strong growth in private rental prices underscores the dynamics of the UK housing market, influenced by factors such as supply and demand, economic conditions, and policy changes. The surge in tenant demand reported by the Royal Institution of Chartered Surveyors (RICS) is likely contributing to these price increases. With rising demand and limited supply, experts predict that rental prices may continue to climb in the near future.
The Index of Private Housing Rental Prices provides a valuable perspective for tenants, landlords, policymakers, and investors, offering insights into rental market trends across different regions and countries. This data allows stakeholders to make informed decisions and understand the evolving rental landscape. For more detailed analysis, refer to the official IPHRP report released by the Office for National Statistics. The next release is scheduled for September 20, 2023.