26th
Jan 2023
Recent data from a flat shire site has found that the average UK room rent increased by the highest ever in Q4 2022 by 13 per cent year on year.
The data from the site’s Quarterly Index also found in Greater London that the average cost to rent a room was more than £900 in September for the first time ever and constantly rose over the months to £949 per month in December.
London saw the biggest ‘leap’ in room rents across the UK when comparing Q4 2022 to Q4 2021
This is coupled with demand outstripping supply as landlords are selling up because of the constant legislation and tax changes to the sector.
It is hard to believe but Scotland was the only UK region that saw the average rent fall which was by 6.0 per cent however rents were inflated in Q4 2021 by attendees at the COP 26 summit in Glasgow.
Tenant demand for properties was the highest ever in summer and early autumn with supply at the lowest ever for nine years, and according to the data there were 245,351 tenants looking for ‘digs’ with just 34,085 rooms available to them.
The site’s latest poll suggests that over the next twelve months there will be further reductions in supply with 41 per cent of agents and landlords saying they will either be reducing their portfolios or selling up full stop.
The director of the flat share company, says: “Although demand has eased since the record peaks we saw in August and September, the combined effect of low supply and the cost-of-living crisis means rents have continued to rise.
“The last 12 months has seen rents across the UK hit record highs and, unless new supply comes into market over the coming months, it’s hard to see those rents come down meaningfully in 2023.
“High rents not only make it difficult for tenants who need to move now, it also means that many stay put to avoid paying more rent.
“Unless people are able to move freely, the impact on the economy could be significant. Work is the key reason people move, but if a potential pay rise is wiped out by having to pay more rent, lots of people will simply stay where they are.”
News Archive »