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ONS house price and rental data: "Renting is nothing short of brutal"

ended 18. December 2024

Average UK private rents increased by 9.1% in the 12 months to November 2024, up from 8.7% in the 12 months to October 2024, according to official data published this morning. Average rents increased to £1,362 (9.3%) in England, £772 (8.0%) in Wales, and £980 (6.5%) in Scotland, in the 12 months to November 2024. In Northern Ireland, average rents increased by 9.0% in the 12 months to September 2024. In England, rents inflation was highest in London (11.6%) and lowest in Yorkshire and The Humber (5.7%), in the 12 months to November 2024. Meanwhile, average UK house prices increased by 3.4%, to £292,000, in the 12 months to October 2024, up from 2.8% in the 12 months to September 2024. Newspage asked property and mortgage experts for their views, below.

5 responses from the Newspage community

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Andrew Montlake
CEO at Coreco
Renting is nothing short of brutal. You have to feel for the UK's tenants as rents are rising at an astronomical and unsustainable rate. In many cases, landlords have no choice but to increase rents as they are in an impossible position as a result of higher mortgage rates and an ever more punitive tax regime. House prices continued to rise in the 12 months to October, likely fuelled by the cheaper morgage rates we had over the summer. But now, with inflation rising again and the economy contracting, all bets are off. Worse still, the full impact of the Budget has yet to be felt. The stamp duty deadline may support demand during the first three months of 2025 but after that, who knows?
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Daniel Hobbs
CEO at New Leaf Distribution
For tenants, it's an unforgiving climate right now. And that's an understatement based on this latest report. It's easy to write the property market off given the fact that inflation is rising again, putting households under even more pressure, and the economy is contracting, but if it's one thing, the property market is resilient. Whatever economic slings and arrows are sent its way, the property market always seems to defy them. Few will be expecting stellar house price growth in 2025 given the number of economic headwinds, most notably rising inflation, but the lack of stock and supply will likely see prices remain positive.
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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
Tenants are in an extremely tough place and have been for a long time. This data highlights exactly how tough. The challenge of saving for a deposit to get on the ladder while paying sky-high rents is phenomenal. In London, affordability is almost non-existent data revealed a week or two ago. With interest rates far higher than what they were a few years ago, affordability is also an ever-present issue for prospective borrowers. The first quarter of 2025 may be busy as people try to beat the stamp duty deadline but all eyes are now on the Bank of England to see when the cuts the economy and households need finally come.
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Riz Malik
Independent Financial Adviser at R3 Wealth
For many renters, the opportunity to own your own property will be a distant dream given the escalation in rents in the UK. Without the Bank of Mum and Dad or inheritance, few people can save a deposit while an increasing proportion of their net income goes to keeping a roof over their head. There is no Christmas cheer here for the next generation of first-time buyers.
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Michelle Lawson
Director at Lawson Financial
Demand for rental properties will increase as small landlords exit the industry, worsening already depleted stock issues. Rents are close to topping out, though, as affordability will start to be an issue as well as the Local Authority Housing Allowance budgets being insufficient. This is having a huge effect on local council spending meaning cutting services elsewhere as a result and a likely rise in Council Tax. Home ownership for tenants will move further away as their disposable income will also decrease. It may tip people into staying at home for longer with further reliance on the Bank of Mum and Dad.