The Office for National Statistics (ONS) recorded an increase of 9.3% to £1,362 in England, an 8% rise in Wales – taking monthly rents to £772 – and a 6.5% increase in Scotland to £980. In Northern Ireland, average rents increased by 9% in the 12 months to September 2024.
Londoners saw the highest rental inflation of 11.6%, while tenants in Yorkshire and the Humber experienced the lowest annual rise of 5.6% in the 12 months to November.
House prices, meanwhile, increased by 3.4% in the 12 months to October, taking the average house price to £292,000 in the UK.
Jeremy Leaf, North London estate agent and a former Royal Institution of Chartered Surveyors (RICS) residential chair, said: “This is the most comprehensive house price index as it covers cash and mortgaged sales, and shows the market is displaying considerable resilience.
“However, we shouldn’t get too carried away, as the figures cover in particular the period leading up to the Budget, when many were trying to complete transactions before anticipated tax rises.
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“The removal of the stamp duty concession at the end of March is fuelling some more first-time buyer activity, which will have a positive impact on the rest of the market by helping to connect chains. However, the prospect of mortgage rates, as well as now inflation, staying higher for longer will mean no more than a steady improvement in activity in early 2025.”
The Consumer Prices Index (CPI) rose by 2.6% in the 12 months to November 2024, up from 2.3% in the 12 months to October.
Experts have warned that the uptick in inflation makes a cut in the Bank of England base rate this month unlikely. The next Monetary Policy Committee (MPC) announcement is due tomorrow (19 December).
This article was first published on YourMoney.com‘s sister site, Mortgage Solutions. Read: Rental growth exceeds 9% for average UK home
