Rental Price Growth Remains Above 2%
The newly released data by The Deposit Protection Service (DPS) shows that rental prices continue an upward trend across the country markets, with a 2.1% increase over Q3 2022.
Average rents in the country reached £889 in Q3 2022, indicating an 8.7% annual increase because of heated demand for rental homes. Interestingly, rental price growth remained above 2% for the second consecutive quarter.
Rental Markets Performance
According to the data, rental values in London saw a 4.2% spike throughout Q3 2022 and hit £1,499. Similarly, annual rents in the capital increased by 12% against this time last year.
Looking back, we see a similar trend. Average rents in the UK increased by 2.4% between Q1 2022 and Q2 2022. Flats became the most sought-after rental property type, enjoying a 9.52% spike between Q3 2021 and Q3 2022.
Market Experts Share
DPS confirms rising rental prices across the UK over Q3 2022. Experts attribute this trend to the growing gap between the demand and supply of rental properties in the markets and the rising costs of living.
In London, demand for spacious homes and flats over the past year continued to drive significant spikes in rental values. Tenants are paying record prices to secure a rental home in London now.
Zephyr Homeloans says that landlords face higher maintenance, insurance, and other essential costs because of the emerging costs of living crisis. It is critical for mortgage brokers to support landlords in finding the right products in these challenging settings.
