By Jess Jones
UK rent prices soared to their highest peak ever in the final quarter of 2022, inching closer to the £1000 mark, according to new data published today.
Flatshare site SpareRoom reported that London rents for the last quarter of 2022 were up 22 per cent on the same period the previous year, taking the average cost of a room up to £935 in the capital – the first time it has exceeded £900. In December specifically, average rents in London were even higher at £949.
Rental demand in London has soared over the last six months while supply withered to a nine year low, with 245,351 renters vying for just 34,085 rooms.
A recent poll by SpareRoom found that 41 per cent of landlords are keen to reduce their portfolio or leave the market entirely as they lose confidence in the housing market.
“The last 12-months has seen rents across the UK hit record highs and, unless new supply comes into market over the coming months, it’s hard to see those rents come down meaningfully in 2023,” Matt Hutchinson, Director at SpareRoom, said.
“Unless people are able to move freely, the impact on the economy could be significant. Work is the key reason people move, but if a potential pay rise is wiped out by having to pay more rent, lots of people will simply stay where they are,” he said.
SpareRoom’s data revealed the UK, on average, saw rents rise by 13 per cent, taking the average cost per room to £660.
Scotland was the only place where rents actually dropped, falling by 6 per cent to £606.
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