"Landlords have left the sector in recent years due to extra red tape and tax as they became a politically expedient target for politicians."
Private rental prices paid by tenants in the UK increased by 5.3% in the 12 months to July, up from 5.2% in June and representing the largest annual percentage change since the ONS UK data series began in January 2016.
The annual inflation rate of private rental prices in the UK began to increase in the second half of 2021. Annual growth was seen across all regions except London, where prices decreased. The annual percentage change in rents increased across all regions in 2022, including in London, and this continued in early 2023.
Annual private rental prices increased by 5.2% in England, 6.5% in Wales, and 5.7% in Scotland in the 12 months to July 2023.
Of the English regions, the highest annual rents inflation was in the West Midlands, Yorkshire and the Humber, and London, at 5.5% in the 12 months to July 2023. The lowest annual inflation was in the North East, at 4.6%.
London's annual percentage change in private rental prices was 5.5% in the 12 months to July, above the England average and its highest annual rate since the London data series began in January 2006.
Tom Bill, head of UK residential research at Knight Frank, commented: “The squeeze on tenants will not end any time soon. Landlords have left the sector in recent years due to extra red tape and tax as they became a politically expedient target for politicians. The unintended consequence has been more financial pain for tenants as the supply of rental property falls and rents rise. It is an imbalance compounded by the fact landlords now face higher mortgage rates.”
