A new market analysis from Ocasa, the specialist rental platform, warns that the average rent bill could reach as much as £2,270 per month. If prices rise in line with the increases already being seen across other living costs.
The price of rent has not yet matched the increasing costs seen across other areas of life. Although rental price increases are notable they are by no means as drastic as increases elsewhere.
A month’s rent in the UK has increased by 9.2% over the past year. Previously this would total £1,061 but in 2022 this rose to £1,159.
Past price increases
The average price of energy has increased by 95.8% over the past year. If rent had experienced the same annual increase, it would now cost £2,269 a month.
London had UK’s most expensive rental market at £1,752/month last year. With a 95.8% increase, as seen across other living costs, that would bring the price up to £3,808 a month.
In the South East prices would rise from £1,139 to £2,422 and rent in the North East would now cost £1,192.
In the past year, the average price of basic food items has risen by 13.9%. If rent prices also rose by this percentage the UK’s average monthly price would be £1,320.
Over the past year inflation rates have expanded by 9.9%. When applied to rent the national average at £1,274 a month while prices in London would make homes £2,138.
Sales and marketing director at Ocasa, Jack Godby, commented: “Currently, and compared to other cost of living increases, tenants haven’t felt the squeeze quite as badly when it comes to their rental bill. However, it can only be a matter of time before this area of life also strains household finances as landlords raise rents in order to compensate for their own cost increases in both their personal and professional lives.”
“Many households who are already bracing for a very harsh winter are likely to be under even more strain before Spring 2023 and we expect that the cost of renting may well be yet another household outgoing driving this financial strain.”