Rent prices reach record high in England

English rent prices have reached another record high, growing by close to 10% in the past year, official figures show.

The typical private rental price in England rose 9.3% in the year up to November, costing £116 more than 12 months earlier, according to the Office for National Statistics (ONS).

English renters paid an average of £1,362 last month - a steep increase from the 8.8% hike seen a month earlier.

UK rent rises were not far behind, growing 9.1% across the year, just below the record-high annual rise of 9.2% in March.

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Londoners saw the biggest rent raises. In the capital, rent bills were up 11.6%, bypassing the previous record high.

Cheaper housing could be found in Scotland and Wales during the period. Their mean monthly rents were £980, up 6.5% and £772, 8.0% higher respectively.

Data for Northern Ireland is only available up to September, during which period rents rose 9%.

Analysis by Sky News found most people in the UK were renters and mortgage holders were in the minority.

Rent increasing disproportionately

Rent increases far surpass house price rises, mortgage rates and the overall rate of inflation.

People remortgaging at the end of November could secure a typical five-year fixed deal for 5.28% or a two-year fixed deal for 5.52%.

Meanwhile, the consumer price index measure of inflation stood at 2.6%.

Also published on Wednesday were average house prices, which were far below rent increases.

Average UK house prices rose 3.4% in the year to October 2024. In England, house prices are up 3%, in Wales 4% and in Scotland 5.5%, the ONS said.

Why are prices rising?

The increase comes due to there being more renters than rental properties available, the National Residential Landlords Association (NRLA) said.

"The biggest pressure on rents remains a chronic shortage of housing to meet demand," NLRA's policy director Chris Norris said.

"According to Savills up to one million new homes to rent will be needed by 2031 to meet growing demand. Despite this, government data shows that one in three landlords are now planning to sell properties they rent out over the next two years."

London Renters Union has been contacted for comment.

(c) Sky News 2024: Rent prices reach record high in England