Rental prices in England, Wales, and Scotland have experienced unprecedented growth due to the overwhelming demand from tenants surpassing the limited housing supply, according to the latest data from the Office for National Statistics.
London leads the surge, with rental prices soaring by 5% in April compared to the previous year, marking the highest annual growth rate since November 2012.
Many buy-to-let landlords have been compelled to raise rents to offset escalating mortgage costs, exacerbating the competition among private tenants for a limited pool of available homes.
Nathan Emerson, CEO of Propertymark, highlighted the growing demand for rental properties and a stagnant supply: "The rental market continues to witness a surge in demand while the availability of rental homes remains stagnant."
Tom Bill, Head of UK Residential Research at Knight Frank, pointed out that legislative changes and tax adjustments have discouraged many landlords from further investment in the buy-to-let sector. As a result, rents have sharply escalated, creating challenges for many tenants.
Bill cautioned that policymakers ensure that the Renters Reform Bill, with its recent details announced, doesn't exacerbate the already difficult situation. With approximately one-fifth of households in England being renters, the impact on tenants becomes a significant concern for many voters.