New data from flatshare site SpareRoom reveals that rents reached an all-time high in Q4 2022, with the average UK room rent increasing 13 per cent year-on-year.
The data, from SpareRoom’s Quarterly Rental Index, also reveals the average cost to rent a room in Greater London went over £900 per month for the first time ever in September 2022 and has continued to rise, with the average rent in December hitting £949 per month.
What’s more, demand continues to far-outweigh supply, with landlord confidence at an all time low.
Comparing Q4 2022 with Q4 2021, London saw the biggest increase in room rents across all UK regions.
Scotland was the only UK region to experience a decrease - down 6.0 per cent- in average rents, however this is due to rents being inflated in Q4 2021 in the Glasgow area due to the Cop26 summit.
Demand for properties was at an all-time high in late summer and early autumn, while supply was at a nine year low.
This means there were 245,351 renters searching and only 34,085 rooms available. Although demand dropped in the lead up to Christmas, the number of rooms also decreased over 2022.
A recent SpareRoom poll suggests that the next 12 months will see a further decline in supply, with 41 per cent of landlords and agents either looking to reduce their portfolio in 2023 or exit the rental market altogether. Over half of those surveyed admitted to not having confidence in the rental market right now, landlord confidence has decreased over the last 18 months.
Matt Hutchinson, director at SpareRoom, 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.”
Want to comment on this story? Our focus is on providing a platform for you to share your insights and views and we welcome contributions.
If any post is considered to victimise, harass, degrade or intimidate an individual or group of individuals, then the post may be deleted and the individual immediately banned from posting in future.
Please help us by reporting comments you consider to be unduly offensive so we can review and take action if necessary. Thank you.
.jpg)
%20(002).png)
.png)
Join the conversation
Jump to latest comment and add your reply
The Government has deliberately caused those high Rents with full scale non stop attack on Private Landlords by every means driving up their costs, even leaving some providers with no option but to
quit creating more shortage.
Tenants are suffering as a direct result of Government interference & others how can they hate millions of Tenants so much.
Mr Gove is the main culprit and should be removed again and Policy’s reversed before further damage is done.
Its ridiculous that he has the support of Shelter / Generation Rent / Acorn etc who are loving all this misery inflected on struggling Tenants. Polly even said she is delighted with the progress of the Bill, shame on you.
Politics of envy and hate the landlord having the unintended consequences, it's the tenants that feel the hurt
Yes Michael!
We'll own nothing and the government will be happy
Half the prblem is our title,"landlord" and it's connotations. If we were described as home providers, it would come across so much better in the real world.
Our title isn’t the problem, our wealth is…. The government wants a lot of it, and the public hate us for it (envy).
You do make a good point William. Language plays a big part in lots of areas. Phrases like “tax incentives” are also an issue. The trouble is the NRLA doesn’t have a PR department so this kind of thing is completely missed as being important.
I agree William, even a title like property owner sounds better than Landlord. In the current circumstances risk provider might be more apt!
Simon. I may be a home provider, but I am certainly not wealthy.
Oh yes, this year will be another bumper year…. For sales 🎉 . If a landlord looks at what is happening in Scotland 🏴, then why would they not sell !! 😱😱. … and that doesn’t even bring in the White Paper to the mix 🤔🤔. Talk about killing the Golden Goose 🦆. I am getting out as soon as is practicable, let HM government pick up the pieces.
One of my main reasons selling is Scotland (and Ireland). They have no right to do what they are doing. Then there's the Wales situation. I've looked at the White Paper. I fear I will never get my property back no matter what they say. We will lose practically EVERY ARGUMENT against the proposed ombudsman. Even when the mistake becomes apparent it will take years to rectify. Labout won't care either.
I object to my AST being converted by Gove. No way. It's like the cladding scandal. He wants builders to take unlimited liability and sign up to a new contract. AND he wants the right to change the terms of the contract UNILATERALLY! He's an arrogant ****. No way am I hanging around for the White Paper. Sure it may well get watered down but by how much? It's my property my rules. The govt sold off it's properties. Gave them away.
I have similar sentiments though will probably exit more slowly.
It appears that selling a house takes longer and longer. Accepted an offer in September and still waiting. Just had an update that the mortgage offer was incorrect. Therefore nothing happening this week.
Therefore have 3 houses not paying me currently, one which i'm selling, one where tenants gave notice, now left and one where tenants not paying and waiting on Section 21 time line to finish.
Currently re-furbing one of the houses but likely to re-let as will sell the property that I am evicting the tenants. This property is too far away from me and is a pain to manage myself.
All these additional costs that as a Landlord we have to factor in.
With the new legislation it clearly gives you the right to evict if you wish to sell. Hence I can stagger my sell off.
While its frustrating being a landlord with all the rubbish we have to put up with, I really would not wish to be a tenant just now. Nightmare. I am going to have to put all my rents up by at least £100 per property per month this year. My tenants are going to be shocked, but I am going to give them 6 months notice of the rent increase, so they can try to move somewhere cheaper if they need to. I have had no vacancies since May 2020 and that was a couple who relocated away from the region. As the article says they may be staying put because the rent is relatively low.
I am doing the same, maybe some as much as £150. I will be writing to them in March giving several months notice for increases in the Summer. I am also going to split the amount by 3 months, my thinking being that if rates stabilise then I might not need to follow through with such a high increase, plus I am not currently in a position to know how much I can pay down the mortgages in this timeframe. To many variables.
In addition I also explain the reason for the increase and I lay the blame firmly at this Government and also state that the Bank of England were complicit with quantitive easing and slow to put up interest rates to head off the current storm.
Gov will screw this up so badly that eventually after colossal damage and several painful years there will be a panic driven reversal.
All too much argo for me at 68,so i am getting out while i still can. For others it maybe 'batten down the hatches' and hope for the best.
I will take my money out and spend it elsewhere and probably not in the UK either.
A fact consistently overlooked, is bedroom occupancy in the rental sector, is much higher than in owner occupied property. I don’t know why more of this fact is not made by those defending LL’s. So every time a property moves from being let to owner occupied the problem gets worse and the supply and demand imbalance increases. 2023 will be the big one in my opinion as the perfect storm we’ve all predicted materialises. It’s just simple Maths.
This is a really good point and also helps to explain why there is more condensation in rental properties, because there are more people per square metre breathing washing / cooking / showering / drying washing indoors.
Interesting point, never thought about this, but guess makes sense. I assume most owners would be older as well.
That’s definitely a factor for condensation. When last looked at (nearly 10 years ago now) 61% of homes owned outright had 2 or more bedrooms unoccupied. 39% of private mortgaged properties were under occupied but only 15% of private rented houses. The irony Andy to answer your point is that a little old lady living in a large 5 bed house gets a 25% discount on her council tax. In social renting only 10% were under occupied and they are the ones with the so called bedroom tax when in reality it’s the little old lady sitting in her big old house putting extra pressure on local housing that’s the biggest problem. As I say I don’t understand what more of this is not being made.
With rents rising as the government turns the screw, it will only be a matter of time before all rents are controlled or even frozen alongside outlawing of section 21. Hence anyone letting post Renters Reform Bill will be saddled with sitting tenants on controlled rent and the value of their property will plummet.
I dare say they would like to do this, but not sure they will be able. With the majority of rental properties being mortgaged, I don't think the sitting tenants situation can happen again, as surely the lender needs to be able to repossess and sell if need be?
Some Benefit Claimants continuously at home all day causing condensation and subletting to friends increasing density.
Don’t forget we have a lovely Mayor that’s a law all to himself and accountable to know one, who has just decided to increase Council Tax on Londoners by £30’000’000 at a time everyone is struggling, Shame on you Mr Mayor.
Sorry Michael but that's the price you pay for living and working in London , I agree it's wrong
Ignore typo
The same Mayor that has presided over London Roads disintegrating and alive with pot holes, due to lack of maintenance and using substandard materials.
The leaves didn’t get swept all Winter, rotting down turning into mud blocking drains & gulley’s. Causing Ponding and Flooding all over the place saturating the Road & substructure doing no end of damage costing hundreds of millions to the taxpayers, he is no fit and person to tell us what to do. I seen so many Roads completely resurfaced virtually over night only 3-4 years ago crumbling away already even though the traffic is restricted to 20 MPH it’s a bad joke, if it was a proper Asphalt mix it would be there 30 years and not budge. I should know I broke out enough of it with pneumatic drills it was elasticated and ever leave go unlike the black top he used you could chip it away with a pick axe, so wrong.
Mayor not fit for purpose.
You should see the pot holes in Norfolk and the crap ash felt they use now
Please login to comment