Rents in the UK have risen at the fastest annual rate since records began seven years ago.
Private rents rose 5.7 percent year on year in September, up from 5.6 percent in July, the biggest annual increase since the Office for National Statistics (ONS) began collecting data in January 2016.
Annual private rents rose 5.6 percent in England, 6.9 percent in Wales and 6 percent in Scotland last month.
In England, London had the highest annual percentage change in private rents at 6.2 percent, while the North East had the lowest at 4.7 percent.
Rent growth in London was the highest annual rate since data collection for London began in January 2006.
The Royal Institute of Chartered Surveyors (RICS) said in its September survey that demand for tenants is growing, while little guidance from landlords continues to highlight the shortage of properties available to rent.
RICS said rising demand and falling supply meant rents were expected to rise by an average of 5 per cent next year.
Greg Zuman, lettings manager at Martyn Gerrard Estate Agents, said: “Owning your own home is now further away for renters than ever before. Instead, for many, rental prospects are also in jeopardy.”
He added: “The lack of supply is weighing heavily on the market, with affordable two-bedroom homes attracting up to 80 applications from desperate renters.
“The situation is forcing renters to move to cheaper areas, which is impacting prices as people leave city centers and move to the suburbs.”
Emma Humphreys, a property lawyer at Charles Russell Speechlys, said “radical reforms” were needed.
“Rents are rising, homeowners are struggling, and landlords are being squeezed out by rising mortgage rates.
“The fundamental problem is the significant imbalance between supply and demand, as governments continually fail to address the problem of insufficient housing supply.”
She said Labour’s pledge to build 1.5 million new homes over five years was positive, but “there is no evidence that any political party understands how to work with developers”.
Harriet Scanlan, lettings manager at London estate agency Anthony Roberts, said: “This market remains a landlord’s market given the limited supply of rental properties and strong demand from tenants.”
House prices in Britain rose 0.2 percent year on year in August, the smallest increase since April 2012. This followed an annual rise of 0.7 percent in July, the ONS said.
Source: I News
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