Fastest rent rise in five years adds to concerns over UK cost of living crisis
Private rents in the UK are rising at the fastest rate in five years, ratcheting up the cost of living burden on millions of households.
The average cost of renting for UK tenants rose by 2% in 2021 – the largest annual increase since 2017, figures from the Office for National Statistics show. Soaring rental prices, coupled with inflation hitting 5.5% in January, will pile further pressure on the government to increase support for vulnerable families.
The east Midlands had the biggest increase in average rental prices, with tenants paying 3.6% more than a year earlier, while London had the smallest, 0.1%, as demand for city flats dwindled during lockdown and people favoured working remotely outside of the capital.
Renters including office workers and students are now flocking back to cities, pushing up rental prices. Supply has outpaced demand and 71% fewer homes were available on London’s rental market in December compared with typical levels a year earlier.
Osama Bhutta, campaign director at the housing charity Shelter, said: “Our services are already hearing from people who are struggling to pay their rent and keep the lights on. Covid-era protections are now gone, and if you struggle to pay your rent you face eviction and homelessness. The government should reverse the damaging welfare cuts that are pushing people into impossible choices.”
Calls for government action came after the insurer Legal & General announced it would spend an extra £2.5bn on its “build to rent” schemes over the next five years. The company is aiming to provide more than 7,000 purpose-built rental homes in UK towns and cities in a move to cash in on the booming market.
Dan Batterton, the head of build to rent at L&G, said while the £2.5bn would not
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