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UK private rent and house price index: "The real pain is being felt by tenants due to soaring rental costs"

ended 14. August 2024

At 09:30, the Office for National Statistics published the latest House Price Index and Price Index of Private Rents (PIPR). Among other things, it showed that average UK house prices increased by 2.7%, to £288,000, in the 12 months to June 2024, and that average UK private rents increased by 8.6% in the 12 months to July 2024 unchanged from in the 12 months to June 2024. Other key findings and views from brokers and property market experts, below.

  • Average house prices increased in England to £305,000 (2.4%), in Wales to £216,000 (1.8%), and in Scotland to £192,000 (4.3%), in the 12 months to June 2024.
  • Average UK private rents increased by 8.6% in the 12 months to July 2024 (provisional estimate), unchanged from in the 12 months to June 2024.
  • Average rents increased to £1,319 (8.6%) in England, £748 (7.9%) in Wales, and £965 (8.2%) in Scotland, in the 12 months to July 2024.
  • In Northern Ireland, average rents increased by 10.0% in the 12 months to May 2024.
  • In England, rents inflation was highest in London (9.7%) and lowest in the North East (6.1%), in the 12 months to July 2024.

5 responses from the Newspage community

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Daniel Hobbs
Managing Director at New Leaf Distribution
House prices have continued to defy broader economic conditions, which have been challenging. The bottom most definitely hasn't fallen out of the market as many claimed it would. The real squeeze, however, is on tenants, with average rents soaring by 8.6% year-on-year. This marks a persistent challenge for tenants across the country, particularly in London where rents have increased by almost 10%. Many tenants are in a vice-like grip meaning it's harder for them to save for a deposit. While there are regional variations, the overall trend is clear: the cost of housing, whether buying or renting, remains a significant financial burden for many. But at least, with mortgage rates edging down, affordability is improving slightly. That's good news for borrowers.
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Stephen Perkins
Managing Director at Yellow Brick Mortgages
Demand in recent weeks has increased markedly, with house prices remaining firm and looking like they will start to creep up again. Whilst mortgage rates are falling, to the relief of homeowners and first-time buyers, rents could remain high or even continue to increase due to demand outstripping supply. It's incredibly tough for tenants right now.
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Andrew Montlake
Managing Director at Coreco
The resilience of the property market over the past year has been notable. The double-digit price falls many predicted simply haven't materialised. The property market had different plans. Since the base rate was cut earlier this month, and with mortgage rates continuing to tumble, most recently yesterday with both the Nationwide and Halifax making cuts, we've seen a surge in demand. Inflation rising slightly is unlikely to dent confidence and we may still get another rate cut from the Bank of England before the year is out. We're bracing for a much busier Autumn ahead.
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Michelle Lawson
Director at Lawson Financial
The dramatic crash that was mooted has not materialised and the property market continues to be relatively stable. The unsurprising increase in rents should really be taken seriously by now. The only reason for this is the exodus of landlords from the sector due to the increased costs, regulatory pressures and relentless battering from the Government. Both Governments were warned of the impact of all the changes and continued to press ahead to the detriment of some of the most vulnerable in society. Expect rents to continue to rise until the Government wake up in which case it will be too late as it is doubtful that rents will then decrease.
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Patricia McGirr
Founder at Repossession Rescue Network
While house prices are holding up fairly well, the real pain is being felt by tenants due to soaring rental costs. For those already teetering on the edge financially, this is more than just an increase, it’s a pressure cooker ready to explode. I see the human toll behind these numbers daily. Families are being squeezed from all sides. House prices are inching out of reach for many, and rents are escalating to unsustainable levels. It’s a cruel irony that the roof over your head is becoming a financial burden too heavy to bear for many. This isn't just an economic challenge; it’s a social crisis in the making. Behind every statistic is a family struggling to keep their home and landlords facing untenable costs. Recent figures showing landlord repossessions on the rise shed light on the difficulties being faced by many tenants.